Here’s What Jim Cramer is Saying About These 10 Stocks

4. HCA Healthcare Inc. (NYSE:HCA)

Number of Hedge Fund Investors: 69

Jim Cramer noted that HCA Healthcare Inc. (NYSE:HCA) is currently the fifth-best-performing healthcare stock in the S&P 500 and is considered the gold standard among hospital chains. He explained that HCA Healthcare Inc. (NYSE:HCA) stands out as the best-managed hospital chain with a strong presence in key regions and generates substantial free cash flow.

“HCA is now the fifth best-performing healthcare stock in the S&P 500. The hospital chain is the gold standard of its kind. The basic bull case for HCA? Let me lay it out for you: this company is the best-run hospital chain with exposure to the strongest areas of the country, and it generates a ton of free cash flow. We know this is a great moment for hospitals, so why not just own the best hospital chain? And yes, HCA is the best.”

HCA Healthcare Inc. (NYSE:HCA) is a strong investment choice due to its solid financial performance and strategic growth efforts. In Q2 2024, HCA Healthcare Inc. (NYSE:HCA) achieved a 7.1% revenue increase, reaching $16.9 billion, with an impressive operating margin of 18.7%. This financial stability allows HCA Healthcare Inc. (NYSE:HCA) to invest in expanding its network and to return capital to shareholders through dividends and share buybacks.

As one of the largest U.S. healthcare providers, HCA Healthcare Inc. (NYSE:HCA) is actively growing through acquisitions and investing in high-demand areas like ambulatory surgery centers and urgent care facilities. This growth aligns with favorable industry trends, such as an aging population and rising healthcare needs. HCA Healthcare Inc. (NYSE:HCA)’s strong cash flow, which exceeded $7.5 billion in 2023, supports its growth initiatives and ability to return value to shareholders while managing debt.

Moreover, HCA Healthcare Inc. (NYSE:HCA) has proven resilient during economic downturns, including the COVID-19 pandemic, maintaining stable revenue and profitability. These strengths make HCA Healthcare Inc. (NYSE:HCA) a promising investment with substantial growth potential and stability.

Baron Health Care Fund stated the following regarding HCA Healthcare, Inc. (NYSE:HCA) in its Q2 2024 investor letter:

“On the health care provider side, volumes remain healthy and labor costs have moderated. We continue to like HCA Healthcare, Inc. (NYSE:HCA), the best-in-class hospital operator with an attractive set of increasingly diversified assets in strong urban markets, where it is typically the #1 or #2 provider. Its strong operating cash flow and under-levered balance sheet provide flexibility to make growth investments and return capital to shareholders.”