5 Best Medical Stocks To Invest In

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

Number of Hedge Fund Holders: 64

HCA Healthcare, Inc. (NYSE:HCA) delivers healthcare services in the United States. The company manages hospitals for general and acute care that provide various medical and surgical services, including intensive care, cardiac care, emergency services, diagnostic services, as well as outpatient services like laboratory tests, radiology, respiratory therapy, physical therapy, and cardiology. It is one of the best medical stocks to invest in. On March 15, HCA Healthcare, Inc. (NYSE:HCA) declared a $0.60 per share quarterly dividend, a 7.1% increase from its prior dividend of $0.56. The dividend is payable on March 30, to shareholders of record on March 17. 

On February 23, JPMorgan raised the firm’s price target on HCA Healthcare, Inc. (NYSE:HCA) to $257 from $235 and kept an Overweight rating on the shares. The firm thinks that HCA Healthcare, Inc. (NYSE:HCA) is still in a good position after Q4, but it has adjusted the multiples and ratings of the managed care group to align with historical levels. Furthermore, the firm has mentioned that the Centers for Medicare and Medicaid Services have announced a 2% preliminary rate cut for Medicare Advantage, which is lower than what the market was expecting. This news has disappointed the analyst, as stated in a research note to investors.

According to Insider Monkey’s fourth quarter database, 64 hedge funds were bullish on HCA Healthcare, Inc. (NYSE:HCA), and Harris Associates is the largest position holder in the company, with 6.6 million shares worth $1.60 billion. 

Diamond Hill Large Cap Strategy made the following comment about HCA Healthcare, Inc. (NYSE:HCA) in its Q4 2022 investor letter:

“HCA Healthcare, Inc. (NYSE:HCA)’s stock price continued to advance in Q4 following a difficult first half of 2022. Fortunately, we did not own shares until the end of Q2. Two major factors that are top of mind for investors right now are volumes and labor constraints, both of which continue to normalize albeit at a relatively slow pace. We remain favorable on the long-term fundamentals of the business and the opportunity for HCA to reinvest the large amounts of cash it generates at attractive returns. That said, the discount to our intrinsic value estimate has narrowed significantly following robust returns in the second half of the year.”