Shares of US health-care insurers and hospitals are falling as lawmakers near a deal to end the record shutdown without extending Affordable Care Act subsidies https://t.co/45MO33dsN1 ...

Group 1: Universal Health Services, Inc. (UHS) - The company operates hospitals and behavioral health care facilities and holds a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 3.8% over the last 60 days [1] - Universal Health has a PEG ratio of 0.80, which is lower than the industry average of 0.95, and possesses a Growth Score of B [1] Group 2: Grupo Cibest S.A. (CIB) - The company provides banking services and products and also carries a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 3.3% over the last 60 days [2] - Grupo Cibest has a PEG ratio of 1.14, significantly lower than the industry average of 2.70, and possesses a Growth Score of B [2] Group 3: Futu Holdings Limited (FUTU) - The company operates as an online brokerage and wealth management platform and holds a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 6.2% over the last 60 days [3] - Futu has a PEG ratio of 0.71, which is lower than the industry average of 1.06, and possesses a Growth Score of B [3]

Group 1: Fox Corporation (FOXA) - Fox Corporation is a news, sports, and entertainment company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 2.2% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 15.32, significantly lower than the industry average of 49.70 [1] - Fox possesses a Value Score of A, indicating strong value characteristics [1] Group 2: Universal Health Services, Inc. (UHS) - Universal Health Services operates hospitals and behavioral health care facilities and also carries a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 3.8% over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 10.24, compared to the S&P 500 average of 25.13 [2] - Universal Health possesses a Value Score of A, reflecting strong value characteristics [2]

Core Points - Auna S.A. has successfully priced U.S.$365 million of 8.750% Senior Secured Notes due 2032, which will be co-issued with Oncosalud S.A.C. [1] - The notes will be used to fund a tender offer for Auna's existing 10.000% Senior Secured Notes due 2029 and to prepay existing indebtedness [2] Company Overview - Auna is a leading healthcare platform in Latin America, operating in Mexico, Peru, and Colombia, focusing on prevention and complex diseases [4] - Founded in 1989, Auna has developed a large healthcare network with 31 facilities, including hospitals and wellness centers, serving 1.4 million health plan members [4]

Group 1 - Community Health Systems (CHS) has agreed to sell its stakes in two joint ventures to Vanderbilt University Medical Center (VUMC) for $600 million, which includes the acquisition of the remaining 80% stake in the joint ventures that operate Tennova Healthcare-Clarksville and other ancillary businesses [7] - The deal will make Tennova Healthcare a part of VUMC's regional medical centers, expanding its presence in Tennessee, where VUMC already operates seven hospitals [3][7] - The transaction is expected to close early next year, pending regulatory approvals and closing conditions [7] Group 2 - VUMC's interest in the hospital is driven by population growth in Clarksville, which has a population of 200,000, making it Tennessee's fifth largest city [3] - CHS has been divesting full or partial stakes in several hospitals this year, including facilities in Florida, Texas, and North Carolina, indicating a strategic shift [5] - CHS's CEO mentioned during a recent investor call that the company has several deals in progress, hinting at ongoing restructuring efforts [4]

Benchmark indices traded largely flat in afternoon trade on Monday, with investors remaining cautious amid mixed global cues and the absence of fresh domestic catalysts. The Sensex was down 17.61 points or 0.02 per cent at 83,921.10, while the Nifty edged up 17.30 points or 0.07 per cent to 25,739.40 as of 12:56 pm. Shriram Finance emerged as the top gainer on the Nifty, surging 5.30 per cent to ₹788.60, extending its morning rally. Apollo Hospitals followed with a gain of 1.92 per cent to ₹7,828.50, while ...

Market Overview - Markets opened cautiously with benchmark indices trading nearly flat as investors assessed mixed global signals and awaited domestic triggers [1][2] - The BSE Sensex opened at ₹83,835.10 and was trading at ₹83,959.99, up 21.28 points or 0.03% [1] - The Nifty 50 opened at ₹25,696.85 and was trading at ₹25,748.80, up 26.70 points or 0.10% [1] Sector Performance - Renewed buying interest in PSU banks and realty stocks provided early support, indicating selective optimism among investors [2] - The PSU Bank index was the top performer last week, rallying 4.66%, while the Capital Market index was the biggest loser, shedding 1.83% [7] Stock Movements - Top gainers on the Nifty 50 included Shriram Finance, which surged 5.19% to ₹787.75, and Mahindra & Mahindra, which gained 1.91% to ₹3,553.70 [3] - On the losing side, Maruti Suzuki led the decliners, falling 2.77% to ₹15,737.00, followed by Titan Company, which dropped 1.17% to ₹3,703.00 [4] Technical Analysis - The Nifty 50 is holding firm above the support level of 25,660, with resistance levels at 25,870–25,960–26,050 [5] - The Bank Nifty faced resistance near ₹58,500, with support at ₹57,500 acting as a solid base [6] Institutional Activity - Foreign Institutional Investors (FIIs) continued their selling streak, offloading equities worth ₹6,769 crore on October 31, while Domestic Institutional Investors (DIIs) purchased equities worth over ₹7,000 crore [8] - The strategy of FIIs selling on rallies and reallocating to better-performing markets is expected to continue [9] Commodity Market - In commodities, gold had support at ₹1,20,870-₹1,20,480 and resistance at ₹1,21,890-₹1,22,300, while silver had support at ₹1,47,450-₹1,46,750 and resistance at ₹1,49,340-₹1,50,280 [10]

Core Insights - The company plans to add 395 inpatient rehabilitation beds by 2027 through new openings and strategic additions, including a 45-bed hospital in Temple, Texas, and a 32-bed unit in Orlando, Florida [1][5] - The delay of the 20% transmittal rule by CMS is seen as beneficial, allowing for a favorable revenue adjustment this quarter, with expectations of a smaller impact in future periods due to stabilized labor costs [2][3][29] - Revenue for the third quarter grew over 7% to $1.36 billion, with adjusted EBITDA also increasing over 7% to $111.7 million, and earnings per share from continuing operations rose over 21% to $0.23 [7][12] Development and Expansion - The company opened a fourth rehab hospital in partnership with the Cleveland Clinic, adding 32 new beds, and plans to open additional facilities in 2026 and 2027, including a 76-bed rehab hospital in Jersey City, New Jersey [1][5] - Future development efforts will focus on the inpatient rehabilitation segment, with plans to add two acute rehab units and two neurotransitional units [5][6] Financial Performance - Inpatient rehab hospital revenue increased 16% year over year to $328.6 million, with adjusted EBITDA up 13% to $68 million [7][9] - The outpatient rehab division saw a revenue increase of 4% to $325.4 million, but adjusted EBITDA decreased over 14% to $24.2 million due to a reduction in Medicare reimbursement and unfavorable payer mix [8][9] - The critical illness recovery hospital division's revenue increased over 4% to $609.9 million, with adjusted EBITDA rising over 10% to $56.1 million [9] Regulatory Environment - The CMS's deferment of the expanded Medicare outlier reconciliation criteria is viewed positively, although further reforms are needed to support treatment for high acuity patients [2][4][19] - The fixed loss threshold for outlier payments has increased significantly over the past four years, impacting the ability to accommodate acutely ill patients [16][20] Capital Management - The company ended the quarter with $1.8 billion in debt and $60.1 million in cash, maintaining a net leverage of 3.4 times [10][11] - A cash dividend of $0.0625 per share was approved, reflecting the company's commitment to enhancing shareholder value [6]

Financial Data and Key Metrics Changes - The company reported normalized FFO of $0.13 per share for Q3 2025, which would have been $0.01 higher if not for the payment of September rent by cash basis HSA on October 1 [17] - Approximately $82 million in net impairments were recorded, primarily related to Prospect Medical Group and the decline in expected proceeds from certain Pennsylvania and Rhode Island assets [18] Business Line Data and Key Metrics Changes - General acute care operators reported a more than $200 million increase in EBITDARM year over year, with notable tenants like LifePoint Health and ScionHealth showing double-digit revenue increases [5] - Post-acute operators saw a $50 million EBITDARM increase compared to the same quarter last year, with specific operators like Ernest Health up 17%, Vibra up 33%, and Median up 7% [5] - The Behavioral Health portfolio experienced a $10 million year-over-year EBITDARM increase [5] Market Data and Key Metrics Changes - International operators comprise approximately 50% of the total portfolio, with consistent coverage exceeding two times [10] - In the UK, Circle Health maintains a high reputation score in patient satisfaction, significantly investing in advanced technologies [10] - Median in Germany reported strong negotiated reimbursement rates and occupancy trends, outperforming prior year revenue and earnings [12] Company Strategy and Development Direction - The company aims to generate total annualized cash rent of more than $1 billion by year-end 2026, excluding contributions from California Prospect properties [9] - A new $150 million share repurchase program has been authorized, reflecting the belief that the share price is significantly undervalued [9] - The company is evaluating the sale or lease of several non-performing assets while also considering sales of earning assets for attractive gains [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate significant cash flow from 388 properties and approximately 39,000 licensed beds globally [16] - The company expects cash proceeds from the settlement with Yale New Haven Health and the sale of Connecticut facilities to be sufficient to repay outstanding DIP loan balances [18] - Management believes that the current macro policy environment makes the capital solutions offered by the company more important than ever [9] Other Important Information - The company has committed approximately $40 million over the next two years for necessary infrastructure and capital improvement projects [14] - The company continues to monitor and plan for the maintenance of all debt covenants while executing various capital strategies [25] Q&A Session Summary Question: How does the company weigh looking at a buyback versus using capital for debt repayment? - The company recognizes the undervaluation of its shares and has multiple opportunities for capital use, including asset sales and debt repurchases [27][28] Question: Can the company highlight the timing of potential buybacks? - Management indicated that buybacks could start immediately, despite upcoming debt maturities [34][35] Question: What is the status of HSA's performance and the late September rent payment? - HSA continues to perform well, with improvements in doctor recruitment and no expected issues regarding future rent payments [37][41] Question: What is the progress on the Yale New Haven hospitals? - Two facilities are under binding agreement, with expectations to close before year-end, and a third facility is expected to have a binding agreement imminently [43][46] Question: Can the company provide an update on rent collections in Pennsylvania and Ohio? - Rent collection issues were primarily related to an Ohio facility that has since reopened, with expectations for full rent to begin in January [50][51]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment returns Group 1: Company Performance - Heritage Commerce Corp (HTBK) has seen a 4.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - HCA Healthcare (HCA), the largest non-governmental operator of acute care hospitals in the U.S., has experienced a 3.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Futu Holdings (FUTU), a technology company offering a digitized brokerage platform, has seen a 1.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Five Below (FIVE), a specialty value chain retailer, has experienced a 1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Eagle Bancorp Montana (EBMT), a bank holding company, has seen a 0.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4]