15 Best and Cheap Stocks to Buy According to Billionaires

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

Forward P/E Ratio: 9.08

No. of Billionaire Investors: 17

Universal Health Services, Inc. (NYSE:UHS) is a holding company and operates through its subsidiaries, including its management company. It owns and operates acute care hospitals, outpatient facilities, and behavioural healthcare facilities. The company’s segments include acute care hospital services, behavioural health care services, and others. UHS operates nearly 360  inpatient facilities, and 60 outpatient and other facilities. These facilities are located in 39 states, Washington, D.C., the U.K., and Puerto Rico.

Universal Health Services, Inc. (NYSE:UHS) exceeded both earnings and revenue estimates for FY2024. The company’s earnings came in at $16.61, beating estimates by $0.69, while the revenue was around $15.83 billion, surpassing consensus by $106.13 million. The company’s results were driven by growth in same-facility net revenues in the acute care hospital segment, with a notable 8.7% growth during Q4 2024. UHS has managed its operating expenses efficiently, with premium pay declining notably from a peak of $153 million in Q1 2022 to $60 million in Q4 2024.

In 2024, Universal Health Services, Inc. opened West Henderson Hospital in Las Vegas and has plans to open Cedar Hill Medical Center in Washington, D.C. With these developments, UHS expects positive EBITDA contributions in 2025. In 2024, the company saw a 13% increase in EBITDA, excluding Medicaid supplemental payments.