UBS’ Top Quant Stocks In AI, IT, Healthcare & Other Sectors: Top 33 Stocks In All Sectors

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

Number of Hedge Fund Investors In Q2 2024: 69

Sector: Healthcare

HCA Healthcare, Inc. (NYSE:HCA) is one of the biggest hospital and healthcare center operators in the US. The firm owns and operates inpatient and outpatient healthcare facilities that cover a wide range of medical specialties. Consequently, owing to the pricey and complex nature of the US healthcare industry, HCA Healthcare, Inc. (NYSE:HCA) depends to a large extent on its deals with public and private healthcare coverage providers. It also creates a climate-related angle to the hypothesis, since hurricanes disrupt its operations, increase healthcare costs, and reduce facility traffic. This was also the case in October when HCA Healthcare, Inc. (NYSE:HCA)’s shares dropped by 10.6% after it took a $50 million revenue hit from Hurricane Helene and missed analyst EPS estimates of $4.95 for Q3 by posting $4.88. However, the firm benefits from its vast network which provides it with key margin benefits and primes it for growing healthcare spending in America.

Baron Funds mentioned HCA Healthcare, Inc. (NYSE:HCA) in its Q2 2024 investor letter. Here is what the fund said:

“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.”