HCA Healthcare (HCA) is a Top-Ranked Value Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - The Zacks Style Scores are indicators designed to help investors select stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] Value Score - The Value Style Score focuses on identifying undervalued stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow to find attractive investment opportunities [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth potential [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by evaluating short-term price changes and monthly earnings estimate changes to identify favorable buying opportunities [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator that evaluates stocks based on value, growth, and momentum, helping investors identify the most attractive companies [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for the highest probability of success [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines due to negative earnings forecasts [10] Company Spotlight: HCA Healthcare - HCA Healthcare is the largest non-governmental operator of acute care hospitals in the U.S., operating 190 hospitals and approximately 2,400 ambulatory care sites across 20 states and the UK [11] - HCA holds a Zacks Rank of 3 (Hold) with a VGM Score of A and a Value Style Score of A, supported by a forward P/E ratio of 17.29, making it appealing to value investors [12] - The company has seen upward revisions in earnings estimates, with the Zacks Consensus Estimate increasing by $1.19 to $27.36 per share, and an average earnings surprise of +12.4% [12][13]