Top 3 Hospital Stocks Well Positioned for Healthcare Reform: HCA Holdings Inc (HCA) and More

The company’s strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, and notable return on equity.

The no. 3 pick is Tenet Healthcare Corporation (NYSE:THC), which is an investor-owned health care services company whose subsidiaries and affiliates own and operate acute care hospitals, ambulatory surgery centers, diagnostic imaging centers, and related health care facilities.

Tenet Healthcare through its subsidiaries operates 49 hospitals, over 100 freestanding outpatient centers, and Conifer Health Solutions, a leader in business process solutions for healthcare providers serving more than 500 hospital and healthcare entities nationwide.

The company reported third-quarter 2012 earnings of $40 million, or 37 cents a share, up from $6 million, or 5 cents a share, a year earlier. EBITDA increased 40% to $269 million, in line with analysts’ forecasts. Net operating revenue rose 5.8% to $2.22 billion, helped by improved terms in contracts with commercial managed care payers, Tenet said.

For 2013, the company forecast EBITDA in a range of about $1.33 billion to $1.43 billion, slightly above analysts’ consensus estimates. Tenet has been very strong on cost control. Their “Medicare Performance Initiative” is continuing to deliver great results in controlling costs.

The article Top 3 Hospital Stocks Well Positioned for Healthcare Reform originally appeared on Fool.com and is written by Anindya Batabyal.

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