Community Health Systems (CYH), Tenet Healthcare Corporation (THC): Do These Obamacare Winners Look Like Losers Now?

Multiple factors
The primary reasons for hospital stocks falling in April, though, vary by organization. HMA, for example, recently lowered its outlook for 2013 after first quarter admission rates were lower than expected. A negative 60 Minutes story in December may have played a role in these results.

HCA Holdings Inc (NYSE:HCA) reported slower admissions growth and weakness in outpatient volumes for the first quarter. The company lowered the upper end of its 2013 earnings guidance.

Meanwhile, Deutsche Bank downgraded shares of Community Health Systems (NYSE:CYH) and Tenet Healthcare Corporation (NYSE:THC) earlier this month from “buy” to “hold.” The investment firm noted the rapid increase in valuation of the stocks stemming from ACA-related expectations was warranted but said that investors could be leery of buying at current price levels.

Showtime
The current pullbacks in hospital stocks could just reflect the likelihood that 2013 is a transitional year. Shares of the leading publicly traded hospital operators enjoyed big gains in the anticipation of benefits that really won’t begin to materialize until next year.

These companies have certainly been the big winners of Obamacare so far. 2014, though, will be showtime. We’ll then see if the winners of the past year ultimately become losers.

The article Do These Obamacare Winners Look Like Losers Now? originally appeared on Fool.com.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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