Jim Cramer’s Bold Predictions About These 10 Healthcare Stocks

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

Number of Hedge Fund Holders In Q3 2024: 66

Date of Cramer’s Comments: 09-05-24

Performance Since Then: 24.8%

HCA Healthcare, Inc. (NYSE:HCA) is one of the biggest hospital managers in America. It operates inpatient and outpatient care facilities, and as a result, is dependent to a large extent on the US government’s healthcare benefit programs for its revenue. HCA Healthcare, Inc. (NYSE:HCA)’s shares dropped by 10% in October after Hurricane Helene reduced its revenue by $50 million and led to a Q3 EPS miss by seven cents. The 10% share price drop erased the gains that the firm had made in the second half. Here’s what Cramer said about HCA Healthcare, Inc. (NYSE:HCA) in September:

“In the interest of keeping things fresh, let me give you a new idea, one we talked about not that long ago: HCA Healthcare. That’s the big hospital chain. HCA has been making a mint from the major uptick in patients coming in for non-urgent procedures. Incredibly, there’s still a huge backlog of people who postponed going to the hospital during the pandemic.

“When I think in football terms, HCA reminds me of Detroit Lions tight end Sam LaPorta, the first intentional pick of the *Ski Daddies*, my fantasy team in Tuesday night’s draft. Yes, I was on autopilot for the first round. LaPorta burst onto the scene with an incredible rookie campaign last year, accumulating nearly 900 yards and a whopping 10 touchdowns. No other tight end had more than six. That’s how he ended up as the best tight end last season, even outperforming Taylor Swift’s boyfriend!

“But both LaPorta and HCA still somehow feel undervalued. Despite HCA being up 47% year-to-date, the stock still sells for less than 18 times earnings, offering a huge discount to the S&P 500. Meanwhile, LaPorta still isn’t a household name, despite his huge first season. Two good options with high floors and lots of upside.”