Goldman Sachs’ Stocks With Highest Consensus Returns: 42 Stocks With The Highest Consensus ROE

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

Consensus ROE: 6%

Number of Hedge Fund Investors in Q2 2024: 46

Universal Health Services, Inc. (NYSE:UHS) is one of the biggest healthcare facility operators in the US. The firm operates hospitals, outpatient care centers, and other facilities. The firm benefits from diversification to an extent, as it also offers tertiary services such as health insurance, pharmacy, and purchasing management. Universal Health Services, Inc. (NYSE:UHS)’s diversified business model enables the firm to target high growth hospital management markets such as acute care and behavioral health. These are among some of the firm’s fastest growing business. Starting with acute care, Universal Health Services, Inc. (NYSE:UHS) grew admissions in acute care by 5.6%, 4.5%, and 3.4% during Q4 2023, Q1 2024, and Q2 2024. Similarly, behavioral revenue grew by 7.2%, 10.4%, and 11% during the same three respectively quarters. Consequently, much of the market’s optimism surrounding Universal Health Services, Inc. (NYSE:UHS) stock is built on these businesses, as the shares are up by 36% year to date. However, on a bearish note, the company is also facing legal through an indirect subsidiary that has been ordered to pay $360 million in damages.

Universal Health Services, Inc. (NYSE:UHS) is continuing to invest in its acute care segment. Here’s what the firm shared during the Q2 2024 earnings call:

“In our acute care segment, we continue to develop additional inpatient and ambulatory care capacity. We currently have 27 operational freestanding emergency departments as well as 12 more, which have been approved and are in various stages of development. Also, construction continues on our de novo acute care hospitals consisting of the 150-bed West Henderson Hospital in Las Vegas, Nevada, which is expected to open late this year. The 136 bed Cedar Hill Regional Medical Center in Washington, D.C. which is expected to open in the spring of 2025, and the 150-bed Alan B. Miller Medical Center in Palm Beach Gardens, Florida, which is expected to open in the spring of 2026.”