HCA Healthcare Today
HCA Healthcare
(As of December 16, 2024 ET)
- 52 week range
- $263.22
▼
$417.14
- Dividend yield
- 0.85%
- P/E ratio
- 13.90
- Target price
- $387.13
The plight of healthcare providers receiving timely reimbursements from health insurance companies is becoming more difficult every year. Health insurance denials have come under scrutiny in light of recent events. Sentiment for stocks of insurance companies, healthcare providers and healthcare sector operators deteriorated. Adding to the selling pressure are concerns that the Trump administration will allow the premium tax credit (PTC) for healthcare exchange subsidies set to expire under the Affordable Care Act (ACA) to expire at the end of 2025.
HCA Healthcare Inc. New York Stock Exchange: HCA is the nation’s largest for-profit hospital operator whose stock price has fallen nearly 25% over the past 60 days from a peak of $417.14 on Oct. 17, 2024, to $313.93 on Dec. 6, 2024. HCA stock cascaded higher. lower since its third-quarter 2024 release, which missed analysts’ consensus EPS estimates by 8 cents and revenue estimates by $39.34. million. Selling can be overwhelming, and here are four reasons to consider buying the dip.
1) Severe hurricanes negatively impacted HCA between the third and fourth quarters of 2024.
Nashville, Tennessee-based HCA was negatively impacted by the third-quarter 2024 hurricane season. Hurricanes Helen and Milton caused catastrophic damage in the southeastern states of Florida, Georgia, North and South Carolina, Virginia and Tennessee. HCA incurred additional expenses related to the impact of Hurricane Helen at its Florida, Georgia and North Carolina facilities of approximately 15 cents per share. If this were not the case, earnings per share in the third quarter would have increased by 7 cents.
HCA noted that ongoing additional costs and revenue losses from Helene and Milton will impact October or fourth-quarter earnings by nearly $200 million to $300 million, or 60 cents to 90 cents per share.
HCA Healthcare Stock Forecast Today
$387.13
Growth potential 25.04%Moderate purchase
Based on ratings from 18 analysts
| High forecast | $440.00 |
|---|---|
| Average forecast | $387.13 |
| Low forecast | $301.00 |
HCA Healthcare Stock Forecast Details
HCA expects 2024 earnings per share and revenue forecasts to be in the lower range of previous estimates.
Although some of the ongoing storm impacts will continue into 2025 at North Carolina facilities, HCA believes they can be managed. The company expects 2025 earnings per share and adjusted EBITDA to grow at or slightly above the high end of its long-term growth range.
HCA CEO Sam Hazen said, “HCA Healthcare has many examples from past hurricanes where our hospitals have recovered from major storms and are more productive than before the storm. I believe that over time we will be able to achieve similar results at these two hospitals as we overcome the effects of the recent hurricanes.”
2) Public scrutiny of health insurers may force them to soften claims denials
Focusing on health insurance companies’ tactics to deny or delay payments to health care providers could put pressure on them to soften denials. This would be a boon to healthcare providers and operators like HCA as they could receive faster reimbursement with less hassle.
The public outcry could lead to stricter regulation of the health insurance industry and higher payments to providers who actually provide medical treatment. Recent decision Elevance Health Inc. New York Stock Exchange: ELV Anthem Blue Cross Blue Shield’s refusal to change its policy limiting reimbursement for anesthesia beyond certain periods may have been prompted by public backlash.
3) Outpatient clinics are a cost-effective positive trend.
Ambulatory surgery centers (ASCs) are healthcare facilities that are more cost-effective, flexible, efficient and patient-friendly. These free-standing facilities specialize in certain types of operations. Procedures at ACS can cost up to 50% less than at a hospital, with far less red tape and higher profit margins. Patients love them because they are more accessible and cheaper than hospitals, resulting in lower insurance copays. Most procedures are outpatient procedures with same-day discharge.
HCA operates 187 full-fledged hospitals and more than 2,400 ambulatory care facilities, including emergency departments, emergency departments, physician clinics and emergency departments. HCA plans to continue to develop its ASCs. By the end of 2024, HCA will add 600 new beds and 100 new outpatient facilities, for a total of more than 2,600 facilities.
4) HCA stock is at a critical double bottom support level.
A double bottom occurs when a stock bounces off the floor and successfully retests the level as the stock rises to new swing highs. A triple bottom will be formed if the stock retests the same level and rebounds.
On May 23, 2024, HCA bottomed at $312.54 before bouncing to $344.20 and moving lower to retest the $312.54 level on July 1, 2024. HCA recovered and rose to its all-time high of $417.14 by October 18, 2024. shares fell 25% from the peak to retest the $312.54 support level, which is also the reverse cup lip line support. The daily RSI is trying to rise again at the 25 band level. Fibonacci (Fibonacci retracement support levels are located at $312.54, $298.81, $279.14 and $261.31.
Actionable Option Strategies: Bullish investors may consider using cash-backed put options to buy STX at Fibonacci retracement support levels to enter and write covered calls to implement a wheel strategy to generate income in addition to the 0.84% dividend yield.
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