15 Small-Cap Healthcare Stocks Hedge Funds Are Buying

12. Universal Health Services, Inc. (NYSE:UHS)

No. of Hedge Fund Holders: 49

Market Capitalization: $12.56 Billion

Analyst Upside: 14.10%

Universal Health Services, Inc. (NYSE:UHS) is a holding company that operates through its subsidiaries and its management company. The company owns and operates acute care hospitals, outpatient facilities, and behavioural healthcare facilities. The company’s segments include acute care hospital services, behavioural health care services, and Others. Universal Health Services has over 359 inpatient facilities, and 60 outpatient and other facilities in the U.S., the U.K., and Puerto Rico.

Universal Health Services, Inc. (NYSE:UHS) recently reported its first-quarter earnings and revenue. The company posted $4.10 billion in revenues, up by 6.70% year-over-year and slightly missing the estimates. The company posted adjusted earnings of $4.84, surpassing estimates by $0.49 per share. Same facility net revenues in the acute care hospital segment soared over 5% year-over-year. UHS saw a 21% rise in EBITDA from a year ago, excluding Medicaid supplement payments. Moreover, West Henderson Hospital in Las Vegas opened in late 2024, adding to the EBITDA in Q1.

Recently, Jason Cassorla from Guggenheim initiated coverage of the stock with a Buy rating and a price target of $208. The analyst mentions UHS’ position to benefit from its strong acute care hospital footprint, which is anticipated to lead to top-line growth compared to its competitors. Moreover, the growing demand for behavioural and mental health services is expected to be a positive driver for the company.