Is Universal Health Services, Inc. (UHS) A Good Stock To Buy?

Seeing as Universal Health Services, Inc. (NYSE:UHS) has witnessed falling interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of money managers that elected to cut their positions entirely heading into Q4. Intriguingly, Andreas Halvorsen’s Viking Global dumped the biggest investment of the 700 funds followed by Insider Monkey, totaling close to $173.5 million in stock, and Jacob Doft’s Highline Capital Management was right behind this move, as the fund said goodbye to about $122.2 million worth. These moves are interesting, as aggregate hedge fund interest fell by 6 funds heading into Q4.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Universal Health Services, Inc. (NYSE:UHS) but similarly valued. We will take a look at CarMax, Inc (NYSE:KMX), Akamai Technologies, Inc. (NASDAQ:AKAM), Macerich Co (NYSE:MAC), and Plains All American Pipeline, L.P. (NYSE:PAA). All of these stocks’ market caps are closest to UHS’s market cap.

As you can see these stocks had an average of 25.25 hedge funds with bullish positions and the average amount invested in these stocks was $594 million. That figure was $1,040 million in UHS’s case. Akamai Technologies, Inc. (NASDAQ:AKAM) is the most popular stock in this table. On the other hand Plains All American Pipeline, L.P. (NYSE:PAA) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Universal Health Services, Inc. (NYSE:UHS) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio despite the slight drop in the total number of elite funds long the stock.