I’m an ACC-qualified finance professional with a Master’s in Audit & Accounting from Istanbul University and certificates in Data Analytics from Coursera. For over two years, I’ve worked as a Data Scientist and Financial Analyst at a leading property management firm in Istanbul, where I developed budgets, set targets, and applied data-driven insights to maximize profitability. My expertise spans financial modeling, market analysis, and investment research, including hands-on experience in stocks and cryptoc ...

Core Viewpoint - Universal Health Services, Inc. will report its fourth quarter results for the period ending December 31, 2025, on February 25, 2026, after market close [1] Group 1 - A conference call for investors and analysts is scheduled for 9:00 a.m. Eastern time on February 26, 2026 [1] - A live webcast of the call will be available on the company's website [2] - Telephone participants must register in advance to receive dial-in information and a unique passcode [2] 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 [3] - The company has a presence not only in the United States but also in the United Kingdom and Puerto Rico [3]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [1] Group 1: Company Overview - Universal Health Services (UHS) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2][10] Group 2: Earnings Growth - Historical EPS growth rate for Universal Health Services is 10.9%, with projected EPS growth of 7.9% this year, significantly outperforming the industry average of -3.9% [5] Group 3: Asset Utilization - Universal Health Services has an asset utilization ratio (sales-to-total-assets ratio) of 1.14, indicating higher efficiency compared to the industry average of 0.82 [7] - The company's sales are expected to grow by 5.2% this year, surpassing the industry average of 3.3% [7] Group 4: Earnings Estimate Revisions - Current-year earnings estimates for Universal Health Services have been revised upward, with the Zacks Consensus Estimate increasing by 0.4% over the past month [8]

Core Insights - The article emphasizes the importance of reassessing investment portfolios in light of ongoing market influences such as AI optimism, Federal Reserve policies, and geopolitical uncertainties [1] Sales Growth as an Indicator - Sales growth is highlighted as a more reliable metric for evaluating stocks compared to earnings, as it reflects real demand for products and services [2][3] - Companies with consistent top-line expansion are likely gaining market share and expanding their customer base, which can indicate future earnings potential [3] Contextual Importance of Sales Figures - It is crucial to benchmark sales growth against peers and industry cycles to differentiate between sustainable growth and temporary spikes [4] - Companies that can maintain growth across various conditions tend to generate more reliable cash flows, allowing for reinvestment and strategic initiatives [4] Stock Selection Criteria - Stocks are shortlisted based on criteria including 5-Year Historical Sales Growth greater than industry average and Cash Flow exceeding $500 million [5] - Additional metrics for stock selection include a Price-to-Sales (P/S) Ratio lower than the industry average, positive sales estimate revisions, operating margin above 5%, and Return on Equity (ROE) greater than 5% [6][7][8] Specific Company Insights - Universal Health Services (UHS) is expected to achieve a sales growth rate of 5.2% in 2026 and currently holds a Zacks Rank of 2 [9][10][11] - Pinnacle West Capital (PNW) is forecasted to have a sales growth rate of 4.6% in 2026, also holding a Zacks Rank of 2 [11] - Methanex Corporation (MEOH) is projected to see a sales increase of 9.8% in 2026 and carries a Zacks Rank of 2 [12]

Market Overview - The U.S. stock market showed subdued performance, with the Dow Jones Industrial Average increasing by 0.11% to 49,071.56, while the S&P 500 decreased by 0.13% to 6,969.01, and the Nasdaq Composite fell by 0.72% to 23,685.12 [1] - The technology sector experienced a significant sell-off, particularly in Microsoft Corporation (MSFT) shares, due to concerns over slower cloud growth, although Meta provided some offsetting strength [2] Value Stocks Analysis - Value stocks are highlighted as appealing investment opportunities amid cautious market sentiment, driven by rising oil prices and geopolitical tensions [2] - The Price to Cash Flow (P/CF) ratio is emphasized as an effective valuation metric, indicating that a lower P/CF ratio suggests better value and strong cash generation potential [3][4] - Analysts note that cash flow is a more reliable indicator of a company's financial health compared to earnings, which can be influenced by accounting estimates and management manipulation [5] Investment Strategy - A comprehensive investment strategy should include multiple valuation metrics such as price-to-book ratio, price-to-earnings ratio, and price-to-sales ratio, alongside a favorable Zacks Rank and Value Score [7] - Parameters for selecting true-value stocks include a P/CF ratio less than or equal to the industry median, a minimum stock price of $5, and an average 20-day trading volume greater than 100,000 [8] Selected Value Stocks - Four companies—Harmony Biosciences Holdings, Inc. (HRMY), Universal Health Services, Inc. (UHS), Concentrix Corporation (CNXC), and Global Payments Inc. (GPN)—meet strict value criteria, showing low P/CF ratios and solid financial health [9] - Each of these companies is projected to grow both sales and earnings per share (EPS) in the current financial year, with all carrying a Value Score of A and demonstrating consistent positive earnings surprises [9] Company-Specific Insights - Harmony Biosciences is projected to see sales growth of 21.4% and EPS growth of 25.9% for the current financial year, despite a 4.9% decline in share price over the past year [13] - Universal Health Services anticipates sales growth of 9.7% and EPS growth of 31.3%, with shares rising by 6.1% in the past year [14] - Concentrix Corporation expects sales growth of 2.9% and EPS growth of 4.8%, although its shares have dropped by 26.1% in the past year [15] - Global Payments forecasts sales growth of 1.8% and EPS growth of 5.8%, with shares declining by 36.8% over the past year [16]

Core Insights - Universal Health Services, Inc. (UHS) is a prominent healthcare services provider with a market capitalization of approximately $12.7 billion, operating a diverse network of acute care hospitals and behavioral health facilities [1] Financial Performance - UHS is expected to announce its fiscal Q4 earnings soon, with analysts predicting an earnings per share (EPS) of $5.91, reflecting a 20.1% increase from $4.92 in the same quarter last year [2] - For fiscal 2025, analysts forecast an EPS of $21.80, which is a 31.3% increase from $16.61 in fiscal 2024, with a further expected rise to $23.52 in fiscal 2026, representing a 7.9% annual growth [3] Stock Performance - Over the past 52 weeks, UHS shares have increased by 8.2%, while the S&P 500 Index and the State Street Health Care Select Sector SPDR ETF have gained 13.3% and 10.9%, respectively [4] - The stock's modest growth is attributed to consistent earnings beats, driven by strong patient demand and revenue increases in both acute care and behavioral health segments [5] Recent Earnings Report - In Q3 2025, UHS reported an adjusted EPS of $5.69, marking a significant 53.4% year-over-year increase, with total net revenues reaching approximately $4.5 billion, up 13.4% year-over-year [6] - The Acute Care segment experienced a same-facility net revenue increase of about 12.8%, while the Behavioral Health segment saw a rise of around 9.3% [6] Analyst Ratings - The consensus among analysts is bullish, with a "Moderate Buy" rating overall; out of 20 analysts, eight recommend "Strong Buy," one "Moderate Buy," ten suggest "Hold," and one advises "Moderate Sell" [7] - The average analyst price target for UHS is $250.41, indicating a potential upside of 25.3% from current price levels [7]

Core Viewpoint - The article highlights Universal Health Services (UHS) as a strong growth stock, supported by its favorable Growth Score and Zacks Rank, indicating solid investment potential for growth investors [2][11]. Earnings Growth - Universal Health Services has a historical EPS growth rate of 10.9%, with projected EPS growth of 7.8% this year, significantly outperforming the industry average of -1.6% [5][4]. Asset Utilization Ratio - The company has an asset utilization ratio (sales-to-total-assets) of 1.14, indicating it generates $1.14 in sales for every dollar in assets, compared to the industry average of 0.82, showcasing superior efficiency [7][6]. Sales Growth - UHS is expected to achieve a sales growth of 5.2% this year, which is higher than the industry average of 4.2%, reflecting strong sales performance [8]. Earnings Estimate Revisions - The current-year earnings estimates for Universal Health Services have been revised upward, with the Zacks Consensus Estimate increasing by 0.4% over the past month, indicating positive momentum [9]. Overall Assessment - With a Zacks Rank of 2 and a Growth Score of B, Universal Health Services is positioned as a potential outperformer and a solid choice for growth investors [11].

Group 1 - Universal Health Services, Inc. (NYSE: UHS) experienced a drop of over 6% on Wednesday but is trading marginally higher on Thursday following Bank of America's cautious stance on hospitals [1] - The stock is considered oversold and at a support level, which could indicate bullish dynamics and a potential upward movement [2][5] - The concept of reversion to the mean suggests that after significant movement in one direction, a reversal is likely, supported by statistical and probability theories [2][3] Group 2 - The stock is currently below the Bollinger Band, which is two standard deviations under the 20-day moving average, indicating it is oversold [4] - Anticipation of a reversion to the mean may draw buyers into the market, potentially leading to an uptrend for the stock [5][6] - The stock has reached a support level around $208, which was previously a resistance level, creating a base for potential buying activity [5][6]

Core Viewpoint - The article summarizes significant analyst rating changes that could impact market trends, highlighting upgrades, downgrades, and new coverage ratings for various companies [1][6]. Upgrades - Barclays upgraded Whirlpool (W) from "Neutral" to "Overweight," raising the target price from $104 to $123, citing accelerated market share growth expected in 2025 and continuation into 2026 [5]. - Oppenheimer upgraded McDonald's (MCD) from "Market Perform" to "Outperform," setting a target price of $355, with a more optimistic outlook for the restaurant sector in 2026 despite a poor performance in 2025 [5]. - Barclays upgraded Lowe's (LOW) from "Neutral" to "Overweight," increasing the target price from $259 to $285, based on an expected improvement in non-essential goods demand due to upcoming tax policy changes [5]. - Piper Sandler upgraded Hershey (HSY) from "Neutral" to "Overweight," raising the target price from $193 to $213, noting lower cocoa costs and the removal of cocoa tariffs, which provide flexibility for reinvestment and growth [5]. - Bank of America upgraded Regeneron Pharmaceuticals (REGN) from "Underperform" to "Buy," significantly raising the target price from $627 to $860, as previous concerns regarding Eylea SD have been addressed [5]. Downgrades - Jefferies downgraded First Solar (FSLR) from "Buy" to "Hold," lowering the target price from $269 to $260 due to limited visibility on orders and emerging strategic issues [10]. - Oppenheimer downgraded Yum Brands (YUM) from "Outperform" to "Market Perform," with no target price set, as the stock's risk-reward profile has become balanced after a 13% increase in 2025 [10]. - Montreal Bank Capital Markets downgraded Union Pacific Railroad (UNP) from "Outperform" to "Market Perform," reducing the target price from $270 to $255, citing high uncertainty regarding regulatory outcomes and weak freight demand [10]. - Piper Sandler downgraded Deckers Outdoor (DECK) from "Neutral" to "Underweight," lowering the target price from $100 to $85, as the company has increased discount promotions on its core brands [10]. - Wells Fargo downgraded Humana (HUM) from "Overweight" to "Neutral," setting a target price of $290, due to uncertainties regarding profit margin targets for 2026 [10]. New Coverage - Argus Research initiated coverage on grocery delivery platform Instacart (CART) with a "Buy" rating and a target price of $52, highlighting revenue growth and recent profitability achievements [11]. - Citigroup initiated coverage on Natera (NTRA) with a "Buy" rating and a target price of $300, citing significant growth potential [11]. - Link Consulting initiated coverage on Galecto (GLTO) with an "Outperform" rating and a target price of $46, noting its acquisition of Damola Therapeutics to advance its oncology pipeline [11]. - Wolfe Research initiated coverage on Apogee Therapeutics (APGE) with a "Market Perform" rating, without a target price, predicting mixed catalysts for the stock in 2026 [11]. - Mizuho Securities initiated coverage on Palvella Therapeutics (PVLA) with an "Outperform" rating and a target price of $205, based on positive clinical trial data for its drug Qtorin [11].

Core Insights - Universal Health Services, Inc. (UHS) is identified as a compelling value play in the medical facilities sector, trading at a forward earnings multiple of 9.62X, which is below its five-year median of 11.70X and the industry average of 10.84X [1][6] - UHS has a Value Score of A, indicating strong appeal to valuation-conscious investors [2] Share Price Performance - UHS has seen a share price increase of 26.7% over the past year, outperforming the industry growth of 22.1% and the S&P 500's rise of 16.3% [4] - Despite trailing behind Tenet Healthcare Corporation (THC) and HCA Healthcare, Inc. (HCA) in returns, UHS has still achieved significant gains, reflecting improving fundamentals and investor confidence [4] Financial Metrics - UHS's forward P/E ratio of 9.62X is lower than major peers, with rising admissions and patient days supporting revenue growth [6] - Adjusted net margins have expanded from 5.2% in 2023 to 7.1% in 2024 and further to 8.1% in Q3 2025, indicating operational leverage [10] Revenue Growth - UHS has experienced steady revenue growth across its Acute Care Hospital Services and Behavioral Health Care Services segments, with adjusted admissions increasing by 6.5% in 2023 and projected growth of 3.8% in 2024 [9] - Adjusted patient days in the Behavioral Health segment rose by 1.7% in 2023 and 1.6% in 2024, demonstrating stable demand [9] Cash Flow and Shareholder Returns - UHS generated $525 million in free cash flow in 2023, $1.1 billion in 2024, and $537 million in the first nine months of 2025, with a conservative long-term debt-to-capital ratio of 35.7% [11] - The company has repurchased approximately 36% of its outstanding shares since 2019, with buybacks totaling $525 million in 2023 and $598.5 million in 2024 [12] Earnings Estimates - The Zacks Consensus Estimate for 2025 adjusted earnings is $21.83 per share, indicating a year-over-year growth of 31.4%, with a projected 7.4% increase in 2026 [13] - Revenue estimates imply growth of 9.7% in 2025 and 5.2% in 2026, with UHS exceeding earnings expectations in the past four quarters, delivering an average surprise of 15.2% [14][13] Analyst Sentiment - Analysts suggest additional upside for UHS shares, which currently trade below the average price target of $252.18, indicating potential upside of approximately 12.1% [15] - Target estimates range from $190 to $302, reflecting varying risk assumptions, but the overall outlook remains positive [15] Conclusion - UHS is well-positioned for investors seeking value with improving fundamentals, supported by discounted valuation, consistent volume growth, expanding margins, and strong free cash flow generation [16] - The company has a conservative balance sheet and an aggressive share repurchase program, enhancing shareholder returns [16]