HCA Healthcare Today
HCA Healthcare
(As of 12/17/2024 ET)
- 52 week range
- $263.22
▼
$417.14
- Dividend yield
- 0.86%
- P/E ratio
- 13.82
- Price target
- $385.63
The plight of medical providers collecting timely reimbursements from health insurance companies is a struggle that is getting more difficult as the year goes by. Denials of health insurance claims have come under scrutiny in light of recent events. Sentiment turned sour in medical sector stocks for insurance companies, healthcare facilities and their operators. Adding to the selling pressure are concerns that the Trump administration will allow the Premium Tax Credit (PTC) to subsidize health exchanges that expire under the Affordable Care Act (ACA) at the end of 2025.
HCA Healthcare New York Stock Exchange: HCA It is the country’s largest for-profit hospital operator that recently saw its stock price fall approximately 25% over the past 60 days from a peak of $417.14 on October 17, 2024, to $313.93 on December 6, 2024. HCA shares have had a consecutive decline since its issuance in the third quarter of 2024, which missed analysts’ consensus EPS estimates by 8 cents and revenue estimates by $39.34 million. Selling may be overdone, and here are four reasons to consider buying the dip.
1) External hurricanes negatively impacted HCA in Q3 through Q4 2024
Nashville, Tennessee-based HCA was negatively impacted by the offshore hurricane season in the third quarter of 2024. Hurricanes Helen and Milton caused catastrophic damage to southeastern states such as Florida, Georgia, North Carolina, Virginia and Tennessee. HCA incurred additional expenses related to the impact of Hurricane Helen on its facilities in Florida, Georgia and North Carolina, amounting to approximately 15 cents per share. Supporting that would have led to an EPS beat of 7 cents in the third quarter.
HCA noted that continued additional expenses and revenue loss from Helene and Milton will impact October or fourth-quarter revenue by approximately $200 million to $300 million, or 60 cents to 90 cents per share.
HCA Healthcare Stock Outlook Today
$385.63
25.31% upModerate purchase
Based on 18 analyst reviews
| High expectations | $440.00 |
|---|---|
| Average expectations | $385.63 |
| Low expectations | $301.00 |
Details HCA Healthcare Stock Outlook
HCA expects full-year 2024 EPS and revenue estimates to come in at a lower range than previous estimates.
While some ongoing hurricane impacts will continue into 2025 at its North Carolina facilities, HCA believes it will be manageable. It expects 2025 EPS and adjusted EBITDA to grow near or slightly above the upper end of their long-term growth ranges.
“HCA Healthcare has many examples from past hurricanes where our hospitals recovered from major storms and became more productive than their pre-storm performance,” said Sam Hazen, CEO of HCA. “I believe we can achieve similar results with these two hospitals in due course while We go beyond the after-effects of these recent storms.
2) Public scrutiny of health insurance companies may put pressure on them to moderate claim denials
Highlighting the tactics that health insurers use to deny or delay reimbursement to providers may put pressure on them to mitigate these denials. This will be a boon for providers and healthcare facility operators like HCA to get reimbursements faster and with less hassle.
Public outcry could lead to closer regulation of the health insurance industry and higher compensation to providers who actually provide medical treatment. The final decision of Elevance Health Company New York Stock Exchange: Elf Anthem Blue Cross Blue Shield to eliminate it Policy change It can be argued that the limitation of reimbursement for anesthesia beyond certain time limits was due to… Backlash from the audience.
3) Ambulatory care facilities are a positive cost-effective trend
Ambulatory surgical centers (ASCs) are more cost-effective, flexible, efficient and patient-friendly medical facilities. These free-standing facilities specialize in specific types of surgical procedures. Procedures at ACS can cost approximately 50% less than in a hospital, with much less red tape and higher profit margins. Patients like them because they are less expensive and less expensive than hospitals, resulting in lower insurance copayments. Most procedures are same-day discharge treatments.
HCA operates 187 large-scale hospitals and more than 2,400 ambulatory care sites, including urgent care centers, urgent cares, physician offices and emergency rooms. HCA plans to continue building its own ASCs. By the end of 2024, HCA will have added 600 new beds and 100 new outpatient facilities for a total of more than 2,600 facilities.
4) HCA stock is at a critical double bottom support level
A double bottom occurs when a stock bounces off the ground and successfully retests the level as the stock rises to new swing highs. A triple bottom will be formed if the stock retests at the same level and bounces.
HCA bottomed at $312.54 on May 23, 2024, before rebounding to $344.20 and falling back to retest $312.54 on July 1, 2024. HCA rebounded to hit an all-time high of $417.14 by October 18, 2024 Shares fell 25% from the peak to retest the support level $312.54, which is also a mirrored support for the lip line. The daily RSI is trying to bend back at the 25 range. Fibonacci (Pullback support levels (Fib) are located at $312.54, $298.81, $279.14, and $261.31.
Actionable options strategiesBullish investors can consider using cash-collateralized puts to buy HCA at Fibonacci retracement support levels to enter and write covered calls to implement the Wheel for Income strategy as well as a 0.84% dividend yield.
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