12 Cheap Healthcare Stocks to Buy Heading into 2025

5. Universal Health Services, Inc. (NYSE:UHS)

P/E Ratio: 12.25 

Universal Health Services, Inc. (NYSE:UHS) is a major healthcare provider operating in the U.S., Washington, D.C., Puerto Rico, and the U.K. It specializes in acute care, offering surgeries, internal medicine, oncology, emergency services, and behavioral health, including mental health and substance abuse treatments. UHS operates 27 acute care hospitals, 333 behavioral health inpatient facilities, 27 freestanding emergency departments, and 21 outpatient centers.

In Q3 2024, Universal Health Services, Inc. (NYSE:UHS) delivered strong financial results, reporting net income of $3.80 per diluted share and adjusted net income of $3.71. Revenue grew 8.6%, driven by a 1.5% rise in acute hospital admissions and a 10.5% increase in behavioral health revenues due to higher revenue per patient day. Expense management improved, with premium pay down 12% and physician costs stabilizing at 7.2% of revenues. Acute care hospital EBITDA rose 36% year-over-year, reflecting margin recovery. Upcoming hospital openings in Las Vegas, Washington D.C., and Florida are expected to drive future growth. Pending Medicaid supplemental programs may further boost revenues starting in 2024-2025.

As of Q3 2024, 50 out of 900 hedge funds held shares in the company, as tracked by Insider Monkey. The largest shareholder in the company was First Eagle Investment Management with stakes worth $1.06 billion. Analysts hold a consensus Moderate Buy rating on the stock.