Core Viewpoint - Momentum investing focuses on "buying high and selling higher," rather than traditional strategies of buying low and waiting for recovery [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: Universal Health Services (UHS) Analysis - UHS has shown a price increase of 10% over the past four weeks, indicating growing investor interest [4] - The stock has gained 21.3% over the past 12 weeks, with a beta of 1.33, suggesting it moves 33% more than the market [5] - UHS has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - UHS has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.83, suggesting it is undervalued at 83 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides UHS, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Various Zacks Premium Screens are available to assist in identifying winning stock picks based on different investing styles [9]

Core Insights - U.S. stock markets have experienced a significant rally in 2023, with the S&P 500 Index up 16.7% year to date, primarily driven by advancements in artificial intelligence technology [1][8] - Several non-tech companies have also shown strong performance, indicating potential investment opportunities in diverse sectors [1][8] Company Summaries General Motors Co. (GM) - GM holds a 17% market share as the top-selling U.S. automaker, with strong demand across its brands [5] - The company reported a 10% year-over-year sales increase in China and has generated $2 billion in revenue from its software and services division [6] - GM's expected revenue and earnings growth rates for next year are -0.7% and 7.9%, respectively, with a 10.8% improvement in earnings estimates over the last 30 days [7] Morgan Stanley (MS) - MS is focusing on wealth and asset management, with strategic acquisitions like EquityZen to enhance its market position [8] - The investment banking segment is projected to see revenue and fee increases of 11.7% and 12.8% in 2025, respectively [9] - Expected revenue and earnings growth rates for next year are 4.1% and 5.8%, with a 3.7% improvement in earnings estimates over the last 30 days [10] Interactive Brokers Group Inc. (IBKR) - IBKR is enhancing its proprietary software and expanding its global footprint, which is expected to support revenue growth [11][12] - The company reported solid revenue growth and lower expenses in its third-quarter results for 2025 [12] - Expected revenue and earnings growth rates for next year are 5.3% and 7.8%, with a 1.4% improvement in earnings estimates over the last seven days [13] Las Vegas Sands Corp. (LVS) - LVS reported a 77.3% increase in earnings and a 24.2% increase in revenues year-over-year for the third quarter of 2025, driven by strong travel demand [14] - The company is focusing on growth in Macao and Singapore, with significant capital investments and new offerings at Marina Bay Sands [15] - Expected revenue and earnings growth rates for next year are 5.1% and 7.3%, with a 10.1% improvement in earnings estimates over the last 30 days [16] Universal Health Services Inc. (UHS) - UHS is expanding its Acute Care and Behavioral Health segments, resulting in a 9.9% increase in net revenues year-over-year for the first nine months of 2025 [17] - The Acute Care unit's revenues rose 11.5% year-over-year, and the company is committed to shareholder returns through share repurchases and dividends [18] - Expected revenue and earnings growth rates for next year are 5% and 7.7%, with a 0.1% improvement in earnings estimates over the last seven days [19]

Core Insights - Universal Health Realty Income Trust (UHT) is a small-cap REIT focused on the healthcare sector, demonstrating slow but steady growth over the past decade [1] - The company operates in a growing niche, offers a high dividend yield, and has potential for capital appreciation [1] - The investment strategy emphasizes identifying undervalued companies with strong fundamentals and potential catalysts for growth [1] Company Overview - UHT is characterized by its ownership of healthcare properties and has maintained a consistent growth trajectory [1] - The company is positioned to reward shareholders through dividends and capital appreciation opportunities [1] Investment Strategy - The focus is on companies that provide healthy dividends and exhibit clear potential for capital appreciation [1] - The investment approach includes filtering for companies that are temporarily undervalued compared to their fundamentals, peers, and historical performance [1] - A preference for businesses with high odds for capital appreciation driven by foreseeable catalysts is highlighted [1]

Core Insights - LVMH share price has experienced a strong uptrend recently, attributed to easing concerns regarding its Chinese business [1] - The share price reached a high of €630, marking its highest level since March and representing a 45% increase from its lowest point [1]

Core Insights - Current market conditions reflect a balance between optimism due to strong earnings and potential rate cuts, and caution stemming from high tech stock valuations and uncertainty regarding Federal Reserve actions [1] - Recent market pullbacks are viewed as a normal reset rather than a significant reversal, making stock selection challenging for retail investors [1] Stock Selection Strategy - A traditional stock-picking approach focusing on sales growth is recommended, as it provides a more reliable evaluation compared to earnings metrics [2][3] - Companies with impressive sales growth and strong cash flow are prioritized, with specific screening parameters including a 5-Year Historical Sales Growth greater than industry average and cash flow exceeding $500 million [6] Key Metrics for Evaluation - Price-to-Sales (P/S) Ratio should be less than the industry average, indicating better value for each dollar of revenue [7] - Positive revisions in sales estimates compared to the industry can lead to stock price increases [7] - Operating Margin should average over 5% over the last five years, reflecting effective cost control and sales growth [8] - Return on Equity (ROE) should exceed 5%, ensuring that sales growth translates into profits [9] - Zacks Rank of 1 or 2 indicates stocks likely to outperform the market [9] Highlighted Stocks - Vertiv Holdings Co (VRT) is projected to have a sales growth rate of 27.5% for 2025 and currently holds a Zacks Rank 1 [10][12] - Universal Health Services Inc. (UHS) expects a sales growth rate of 9.7% for 2025 and also holds a Zacks Rank 1 [10][13] - Aptiv PLC (APTV) anticipates a sales increase of 2.9% in 2025, with a Zacks Rank 2 [10][14] - Ameren Corporation (AEE) has a projected sales growth of 16.2% for 2025 and carries a Zacks Rank 2 [10][15] - FirstCash Holdings, Inc. (FCFS) expects a sales growth of 5.3% in 2025 and also holds a Zacks Rank 2 [10][16]

Facilities and Operations - As of September 30, 2025, the company owned and/or operated 374 inpatient facilities and 156 outpatient facilities across 39 states, Washington, D.C., the U.K., and Puerto Rico[133]. Revenue and Financial Performance - Net revenues from acute care hospitals and outpatient facilities accounted for 59% of consolidated net revenues for the three-month period ended September 30, 2025, compared to 57% for the same period in 2024[134]. - Net revenues increased by 13.4%, or $532 million, to $4.495 billion for the three-month period ended September 30, 2025, compared to $3.963 billion in the same period of 2024[152]. - Net revenues increased by 9.9%, or $1.165 billion, to $12.879 billion for the nine-month period ended September 30, 2025, compared to $11.714 billion in the same period of 2024[156]. - Net revenues from behavioral health services increased by $154 million, or 9.3%, in Q3 2025 compared to Q3 2024[197]. - Net revenues from behavioral health services increased by $399 million, or 7.8%, during the nine-month period ended September 30, 2025, compared to the prior year[216]. Income and Expenses - Income before income taxes increased by $155 million, or 46%, to $497 million for the three-month period ended September 30, 2025, compared to $342 million in the same period of 2024[153]. - Net income attributable to UHS increased by $114 million, or 44%, to $373 million during Q3 2025 compared to $259 million in Q3 2024[154]. - Income before income taxes increased by $331 million, or 31%, to $1.391 billion during the nine-month period ended September 30, 2025, compared to $1.060 billion in the same period of 2024[156]. - Salaries, wages, and benefits accounted for 46.1% of net revenues in the third quarter of 2025, down from 48.3% in the same period of 2024[152]. - Other operating expenses increased to 28.8% of net revenues in the third quarter of 2025, compared to 27.5% in the same period of 2024[152]. Medicaid and Legislative Impact - The company receives annual Medicaid revenues of approximately $100 million or greater from multiple states, indicating a significant reliance on state-based revenue programs[141]. - Recent legislation, the One Big Beautiful Bill Act, may limit Medicaid enrollment and expenditure, potentially impacting future revenues[141]. - Future Medicaid reductions and legislative changes may limit enrollment and expenditures, potentially impacting revenues[149]. - The company anticipates a reduction in aggregate annual net benefit from various state Medicaid supplemental payment programs by approximately $420 million to $470 million by 2032 due to legislative changes[329]. Inflation and Cost Pressures - The healthcare industry is experiencing inflationary pressures, particularly in personnel costs, which could adversely affect future results of operations[142]. - The company faces ongoing inflationary pressures, particularly in personnel costs, which have moderated recently but remain a concern for future operations[146][147]. - Increased interest rates have significantly raised interest expenses, impacting free cash flow and access to capital markets[142]. - The company has implemented initiatives to mitigate rising physician-related expenses in acute care, particularly in emergency room care, anesthesiology, and radiology[142]. Operating Metrics - Average daily census for acute care hospital services was 4,457.1 in the first nine months of 2025, compared to 4,425.8 in the same period of 2024[160]. - The occupancy rate for licensed beds was 65.6% for the nine months ended September 30, 2025, slightly down from 65.7% in the same period of 2024[160]. - The average length of stay for patients remained stable at 4.8 days for both the nine-month periods ended September 30, 2025, and 2024[160]. - The average length of inpatient stay was 13.6 days in 2025 compared to 13.5 days in 2024[204]. - The occupancy rate for behavioral health care facilities was 74% in 2025, up from 73% in 2024[204]. Reimbursement Programs - The Texas Medicaid supplemental payment program is projected to generate revenues of $322 million for 2025, with a net benefit of $194 million[266]. - The CHIRP program is estimated to increase reimbursement to hospitals by approximately $20 million to $23 million in program year 2026[269]. - Estimated net reimbursements from the expanded program are projected to be approximately $51 million for the year ended December 31, 2025[308]. - The Tennessee Directed Payment Program (DPP) generated $11 million in net reimbursements for the three-month period and $69 million for the nine-month period ended September 30, 2025, with no revenue recorded in the same periods of 2024[314]. - Estimated net reimbursements from the Tennessee DPP are projected to be approximately $83 million for the year ended December 31, 2025[315].

Core Viewpoint - Investor sentiment is currently bullish due to solid third-quarter earnings, despite concerns over a government shutdown and economic data blackout [2][5] Group 1: Stock Recommendations - Recommended stocks include Roku, Inc., Universal Health Services, Inc., and Atlassian Corp., which have received upgraded broker ratings [3][6] - Roku, Inc. is the leading TV streaming platform in the U.S., Canada, and Mexico, with a projected earnings increase of 134.8% year-over-year for 2025 and a 6.7% upward revision in broker ratings [6] - Universal Health Services operates over 355 inpatient acute care hospitals and is expected to see a 27.6% increase in earnings for 2025, with a 5% upward revision in broker ratings [7][8] Group 2: Broker Insights - Brokers provide valuable insights through direct engagement with company management, public disclosures, and earnings calls, allowing for a comprehensive assessment of a company's fundamentals [4] - While broker upgrades can signal potential stock performance, they should not be the sole basis for investment decisions, as sustainable returns require a broader analysis [5]

Core Viewpoint - Universal Health Services, Inc. (UHS) demonstrates strong financial performance and growth potential, leading UBS to maintain a "Buy" rating and raise its price target from $280 to $302 [1][6]. Financial Performance - UHS reported a 53% year-over-year increase in earnings per share (EPS) for Q3, reaching $5.69, which exceeded the Zacks Consensus Estimate by 22% [2][6]. - The company's revenues rose by 13.4% to $4.5 billion in Q3, surpassing the consensus mark by 4.2% [3]. - Adjusted EBITDA increased by 27.4%, reaching $670.6 million, supported by higher admissions and patient days [3]. Market Position - Despite challenges from elevated operating costs, UHS's strong top-line growth and improved segmental revenues highlight its robust market position and operational efficiency [4]. - The company has consistently outperformed consensus EPS estimates over the past four quarters, reinforcing its reputation as a reliable performer in the healthcare industry [4]. Stock Performance - UHS's current stock price is $224.54, reflecting a 2.38% increase, with a 52-week high of $226.72 and a low of $152.33 [5]. - The market capitalization of UHS stands at approximately $14.29 billion, with a trading volume of 76,863 shares [5].

Core Insights - Wall Street has begun a significant earnings week, with the stock market reaching new all-time highs, prompting discussions on investment strategies in a strong bull market [1][2] Group 1: Market Overview - The stock market is experiencing a rally, with some investors hesitant to buy at new highs, potentially missing out on opportunities [1] - Approximately 200 stocks in the S&P 500 are down year-to-date, indicating not all stocks are participating in the rally [2] Group 2: Investment Strategy - Investors are encouraged to consider buying stocks that are climbing, particularly those with strong upward earnings revisions, categorized as Zacks Rank 1 (Strong Buys) [2][3] - A screening method has been developed to identify top momentum stocks, focusing on those within 20% of their 52-week highs and ensuring value through PEG and Price to Sales ratios [4][8] Group 3: Company Spotlight - Universal Health Services (UHS) - Universal Health Services, Inc. is highlighted as a strong buy, being one of the largest providers of hospital and healthcare services in the U.S. [5][6] - UHS has shown steady growth, with a significant Q3 report indicating upward earnings revisions, earning it a Zacks Rank 1 [9] - The company is projected to grow adjusted earnings per share (EPS) by 24% in 2025 and 7% in the following year, following a 50% growth in 2025 [10] - UHS stock has increased by 21% in 2025 and 90% over the past three years, outperforming its industry [13] - The stock trades at a 15% discount to its industry and 52% below its average Zacks price target, suggesting further growth potential [14]

Core Insights - Universal Health Services, Inc. (UHS) reported third-quarter 2025 adjusted earnings per share (EPS) of $5.69, exceeding the Zacks Consensus Estimate by 22.1% and reflecting a year-over-year increase of 53.4% [1][8] - Net revenues reached $4.5 billion, marking a 13.4% year-over-year improvement and surpassing the consensus mark by 4.2% [1][8] Financial Performance - Adjusted EBITDA, net of non-controlling interests (NCI), increased by 27.4% year over year to $670.6 million, exceeding the estimate of $577.4 million [3][8] - Total operating costs were $4 billion, rising 11% year over year due to higher salaries, wages, benefits, and supplies, which was above the estimated $3.9 billion [3] Segment Performance - **Acute Care Hospital Services**: Adjusted admissions grew 2% on a same-facility basis, with adjusted patient days up 0.4% year over year and net revenue per adjusted admission increasing by 9.8%. Net revenues from acute care services improved by 12.8% on a same-facility basis [4] - **Behavioral Health Care Services**: Adjusted admissions rose 0.5% on a same-facility basis, with adjusted patient days increasing by 1.3% and net revenue per adjusted patient day advancing by 7.9%. Net revenues from behavioral healthcare services improved by 9.3% on a same-facility basis [5] Cash and Debt Position - As of September 30, 2025, UHS had cash and cash equivalents of $112.9 million, a decrease of 10.4% from the end of 2024. The company has an available borrowing capacity of $965 million under its $1.3 billion revolving credit facility [6] - Long-term debt stood at $4 billion, down 11.5% year over year, with current maturities totaling $740.2 million. Total equity increased by 7.1% to $7.2 billion [7] Share Repurchase and Guidance - UHS repurchased shares worth approximately $234.3 million in the third quarter and approved a $1.5 billion increase to its stock repurchase program, bringing the total remaining authorization to $1.8 billion [9] - The company revised its 2025 guidance, forecasting net revenues between $17.306 billion and $17.445 billion, indicating a 9.8% growth from 2024. Adjusted EBITDA is now expected to be in the range of $2.569 billion to $2.619 billion [10][11]