Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves a ...

Key Takeaways Investors are turning to sales growth as a more reliable measure than earnings in a volatile market.Stocks like UHS, FE, NTES, LW and JPM show solid expected sales growth and strong cash generation.The screen favored firms with low P/S ratios, rising sales estimates and robust operating margins and ROE.Markets started 2025 strong but soon turned volatile amid tariff and geopolitical risks. The Fed cut rates by 25 basis points to 4.00–4.25% in September and signaled two more cuts this year. Des ...

Key Takeaways Universal Health will report Q3 results on Oct. 27, with EPS estimated at $4.56 on $4.3B in revenue.Revenue gains are fueled by Acute Care Hospital and Behavioral Health Care Services segment growth.Higher salaries, wages, and supply costs may pressure margins, making an earnings beat uncertain.Universal Health Services, Inc. (UHS) is set to report third-quarter 2025 results on Oct. 27, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently ...

Core Insights - The Zacks Medical-Hospital industry is facing multiple challenges, including rising labor and supply costs, workforce burnout, regulatory hurdles, and tighter funding, while also dealing with cybersecurity threats. However, technology-driven innovations may lead to future efficiencies and a gradual recovery in patient volumes [1][4][5]. Industry Overview - The industry consists of for-profit hospital companies providing various healthcare services, including acute care, rehabilitation, and psychiatric care. Revenue is influenced by inpatient occupancy, medical services provided, and outpatient procedures. Payments come from government programs, managed care plans, private insurers, and patients directly [2]. Key Trends - There is a rising demand for healthcare services, particularly due to an aging population projected to increase from 56.1 million in 2020 to 73.1 million by 2030. National health spending is expected to reach $5.6 trillion by 2025 and $8.6 trillion by 2033. However, there is a shift towards outpatient and home-based services, leading to excess capacity in many hospitals [3]. Cost Pressures - Hospitals are experiencing margin pressures from labor shortages, rising wages, supply chain disruptions, and increased benefit costs. New tariffs on imported medical devices are expected to further inflate expenses. Providers are adopting automation and optimizing staffing to control costs, while cybersecurity risks are increasing insurance premiums [4]. Technological Advancements - Hospitals are increasingly utilizing AI, automation, and real-time analytics to enhance efficiency and clinical outcomes. Telehealth services, which gained traction during the pandemic, remain crucial for expanding access to healthcare [5]. Mergers and Acquisitions - Post-pandemic M&A activity is on the rise as hospitals seek scale and financial stability. Consolidation is driven by economic recovery and evolving care models, with smaller facilities likely to be acquired by larger systems [6]. Industry Performance - The Zacks Medical-Hospital industry currently holds a Zacks Industry Rank of 201, placing it in the bottom 17% of over 240 Zacks industries, indicating challenging near-term prospects [7][8]. Stock Performance - Over the past year, the industry has underperformed the S&P 500, losing 5.1%, while the S&P 500 gained 16%. However, it outperformed the broader Medical sector, which declined by 13.2% [10]. Current Valuation - The industry trades at a trailing 12-month EV/EBITDA ratio of 8.14X, compared to the S&P 500's 18.43X and the sector's 10.32X. The industry has fluctuated between 6.47X and 9.55X over the past five years [13]. Company Highlights - **HCA Healthcare**: Focuses on general and acute care hospitals, with a projected 2025 EPS of $26.17, indicating a 19.2% year-over-year growth. The company has seen a 26.4% share price increase over the past six months [16][17]. - **Universal Health Services**: Manages acute care hospitals and outpatient centers, with a 2025 EPS estimate of $20.43, reflecting a 23% year-over-year increase. Shares have gained 17.3% in the past six months [20][21]. - **Community Health Systems**: Operates a network of acute care hospitals, with a projected 2025 EPS growth of 67%. The company has seen a 17.8% increase in share price over the past six months [24][26].

Core Insights - Universal Health Services, Inc. (UHS) is a significant player in the U.S. healthcare sector, operating a network of acute care hospitals, behavioral health facilities, and ambulatory centers, competing with major companies like HCA Healthcare and Tenet Healthcare [1] Performance Summary - UHS has experienced a 30-day gain of 3.38%, indicating strong investor confidence and positive market sentiment, despite a recent 1.91% decline over the last 10 days, which may present a buying opportunity for investors [2][6] - The stock is projected to appreciate by 14.75%, supported by UHS's strategic positioning and strong fundamentals within the healthcare sector, making it an appealing option for growth-oriented investors [3][6] Financial Health - UHS's financial health is highlighted by a Piotroski Score of 8, reflecting strong profitability and efficient operations, which is essential for sustaining growth and delivering shareholder value [4] - Analysts have set a target price of $226.33 for UHS, indicating substantial upside potential from current levels, with recent price movements suggesting a potential support level, making it an attractive entry point for investors [5]

Group 1 - Universal Health Services, Inc. will report its third quarter results for the period ending September 30, 2025, after market close on October 27, 2025 [1] - A conference call for investors and analysts is scheduled for 9:00 a.m. Eastern time on October 28, 2025, with a live webcast available on the company's website [1] - Participants can register in advance for the conference call to receive a confirmation email with details on how to join, including a unique passcode and registrant ID [1] Group 2 - Universal Health Services, Inc. is one of the largest hospital companies in the United States, operating acute care hospitals, behavioral health facilities, and ambulatory centers across the U.S., the U.K., and Puerto Rico [2]

Company Overview - Universal Health Services, Inc. (UHS) has a market cap of $12.4 billion and operates various medical care facilities including acute care hospitals and behavioral health centers [1] - The company is categorized as a large-cap stock, reflecting its substantial size and influence in the medical care facilities industry [2] Financial Performance - UHS stock reached an all-time high of $243.25 on September 24, 2024, and is currently trading 20% below that peak [3] - Over the past three months, UHS stock has increased by 12.2%, outperforming the iShares U.S. Healthcare Providers ETF (IHF), which rose by 3.7% [3] - Year-to-date, UHS stock has climbed 8.5%, but has dropped 19.1% over the past 52 weeks, while IHF saw a 1.8% rise and a 14.7% decline over the same period [3] Technical Indicators - UHS has recently surpassed its 50-day and 200-day moving averages, indicating a potential uptrend [4] Market Position - UHS has underperformed compared to its peer Encompass Health Corporation (EHC), which experienced a 30.6% surge in 2025 and 37.3% returns over the past 52 weeks [5] Analyst Ratings - Among 20 analysts covering UHS stock, the consensus rating is a "Moderate Buy," with a mean price target of $217.75, suggesting an 11.8% upside potential from current price levels [6]

Core Viewpoint - Universal Health Services (UHS) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - A strong correlation exists between earnings estimate revisions and near-term stock price movements, making the Zacks rating system valuable for investors [4][6]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, impacting stock price movements through their large transactions [4]. Business Improvement Indicators - Rising earnings estimates and the Zacks rating upgrade suggest an improvement in Universal Health Services' underlying business, which could lead to increased stock prices [5]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Universal Health Services is expected to earn $20.28 per share, with a 5.1% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Universal Health Services in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Insights - The article emphasizes the importance of sales growth over traditional earnings metrics for evaluating stocks, especially in volatile market conditions [2][3][10] - A selection of stocks with strong sales growth and cash flow is recommended, including Universal Health Services, Methanex, Arista Networks, Voya Financial, and Maximus [2][10][12] Sales Growth as a Metric - Sales growth is preferred as it reflects actual demand for a company's products or services, providing better visibility into the durability of the business model [3][5] - Companies that can expand their sales during economic stress demonstrate pricing power and competitive advantages [3][5] Earnings Limitations - Earnings can be misleading due to one-off charges, cost-cutting, and accounting adjustments, making them less reliable indicators of a company's trajectory [4] Cash Flow and Financial Flexibility - Sustained sales growth leads to stronger cash flows, allowing companies to reinvest in innovation, expand markets, or return capital to shareholders without excessive debt reliance [5] Stock Selection Criteria - Stocks are shortlisted based on criteria such as 5-Year Historical Sales Growth greater than industry average and Cash Flow exceeding $500 million [6] - Additional metrics include P/S Ratio, % Change in Sales Estimate Revisions, Operating Margin, Return on Equity, and Zacks Rank [7][8][9] Recommended Stocks - Universal Health Services (UHS) is expected to have a sales growth rate of 8.5% in 2025 and holds a Zacks Rank of 2 [11][12] - Methanex (MEOH) anticipates a sales growth rate of 5.6% in 2025 with a Zacks Rank of 1 [12] - Arista Networks (ANET) is projected to achieve a sales growth of 25.4% in 2025 and has a Zacks Rank of 2 [13] - Voya Financial (VOYA) expects a sales growth of 16.1% in 2025, also holding a Zacks Rank of 2 [14] - Maximus (MMS) forecasts a sales growth of 2.7% in fiscal 2025 and has a Zacks Rank of 1 [15]

Core Insights - Universal Health Services, Inc. (UHS) is recognized as a leading healthcare provider with a focus on expanding operational scale and technological innovation [1] Financial Performance - In Q2 2025, UHS reported net revenues of $4.284 billion, reflecting a 9.6% increase, and a net income of $353.2 million, equating to $5.43 per diluted share, driven by $101 million in incremental Medicaid reimbursements [2] - The growth in revenue is attributed to enhanced Medicaid support, including $58 million from Tennessee's new directed payment program [2] Infrastructure Development - UHS opened a new 142-bed acute care hospital in Washington, D.C., in April 2025, which initially incurred a pre-tax loss of approximately $25 million due to startup costs [3] - This new facility is part of UHS's strategy to improve access to behavioral and acute care services in underserved urban areas [3] Technological Innovation - The company launched Hippocratic AI's generative AI healthcare agents aimed at enhancing post-discharge patient engagement, reducing readmissions, and improving care continuity [4] - This initiative reflects UHS's commitment to integrating AI for better patient outcomes and operational efficiency [4] Quality and Safety Initiatives - UHS continues to prioritize quality and safety, with multiple hospitals achieving top Leapfrog safety scores and several subsidiaries recognized by Newsweek's Best Addiction Treatment Centers for 2025 [5] - These efforts highlight the company's dedication to expanding specialized care services and maintaining high standards in healthcare delivery [5]