10 Best Health Insurance Stocks to Buy

5. HCA Healthcare, Inc. (NYSE:HCA)

Number of Hedge Fund Holders: 72

Founded in 1968, HCA Healthcare, Inc. (NYSE:HCA) is a leading healthcare provider known for its extensive network, owning and operating 182 hospitals and approximately 2,300 ambulatory care sites. These sites include surgery centers, free-standing emergency rooms, urgent care centers, and physician clinics.

HCA Healthcare, Inc. (NYSE:HCA) had a notable first quarter in 2024, showcasing strong financial results and significant growth in inpatient admissions, surgeries, and emergency room visits. Although there was a decline in outpatient surgery revenue, the company’s adjusted earnings per share increased to $5.36, reflecting nearly a 9% rise. Adjusted EBITDA climbed to $3.35 billion, a 5.7% year-over-year increase.

Following these developments, TD Cowen revised its financial projections for HCA, lowering the price target to $360 from the previous $371 while maintaining a Buy rating. This revision, which considers the first-quarter performance and a perceived softening in the trend environment, led TD Cowen to adjust its projections for HCA Healthcare, Inc. (NYSE:HCA)’s EBITDA in 2024 and 2025, as well as its 2025 enterprise value to EBITDA minus net corporate income target multiple.

As of Q1 2024, 72 hedge funds held positions in HCA Healthcare, Inc. (NYSE:HCA) The fund with the largest stake was First Eagle Investment Management, holding 4.5 million shares, which comprised 3.41% of their portfolio.

Diamond Hill Large Cap Strategy stated the following regarding HCA Healthcare, Inc. (NYSE:HCA) in its first quarter 2024 investor letter:

“Among our top individual contributors in Q1 were American International Group (AIG) and HCA Healthcare, Inc. (NYSE:HCA). Health care facilities operator HCA Healthcare benefited from a strong demand environment for hospitals in Q4, which is expected to continue into 2024 as nursing labor costs normalize and companies are able to improve margins tied to above-average physician costs. As a best-in-class operator with unique assets in favorable geographies, we believe the outlook for HCA Healthcare from here is favorable.”