The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer.
However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability.
But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
Universal Health Services (UHS) is a value stock with strong fundamentals. It trades at a low P/E ratio, boasts high profitability, solid financial health, and positive growth prospects, indicating potential undervaluation.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how hospital chains stocks fared in Q2, starting with Universal Health Services (NYSE:UHS).
Hospital management company Universal Health Services (NYSE:UHS) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 9.6% year on year to $4.28 billion. The company expects the full year’s revenue to be around $17.2 billion, close to analysts’ estimates. Its non-GAAP profit of $5.35 per share was 8.4% above analysts’ consensus estimates.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Universal Health Services (UHS) is a strong value stock with low P/E, solid profitability, and steady growth, making it an attractive pick for value investors.
From novel pharmaceuticals to telemedicine, most healthcare companies are on a mission to drive better patient outcomes. Despite the rosy long-term prospects, short-term headwinds such as COVID inventory destocking have harmed the industry’s returns -
over the past six months, healthcare stocks have collectively shed 13.7%. This drawdown is a stark contrast from the S&P 500’s 3.6% gain.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
The US market is yet to commence its session on Wednesday, but let's get a preview of the pre-market session and explore the top S&P500 gainers and losers driving the early market movements.
Join us in exploring the top gainers and losers within the S&P500 index one hour before the close of the markets on Tuesday as we examine the latest happenings in today's session.
Stay informed about the performance of the S&P500 index in the middle of the day on Tuesday. Uncover the top gainers and losers in today's session for valuable insights.
Hospital management company Universal Health Services (NYSE:UHS) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 9.6% year on year to $4.28 billion. The company expects the full year’s revenue to be around $17.2 billion, close to analysts’ estimates. Its non-GAAP profit of $5.35 per share was 8.4% above analysts’ consensus estimates.
Hospital management company Universal Health Services (NYSE:UHS) will be announcing earnings results this Monday after market hours. Here’s what you need to know.
