Is HCA Healthcare (HCA) a Strong Long-Term Investment?

Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy returned 10.96% net in the fourth quarter compared to a 7.24% return for the Russell 1000 Index. Holdings in the technology and consumer discretionary sectors helped the strategy to outperform in the quarter. The strategy returned better than the index during 2022 but still declined by double digits. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Diamond Hill Large Cap Strategy highlighted stocks like HCA Healthcare, Inc. (NYSE:HCA) in the Q4 2022 investor letter. Headquartered in Nashville, Tennessee, HCA Healthcare, Inc. (NYSE:HCA) is a health care services provider. On February 14, 2023, HCA Healthcare, Inc. (NYSE:HCA) stock closed at $258.90 per share. One-month return of HCA Healthcare, Inc. (NYSE:HCA) was 0.83%, and its shares gained 2.74% of their value over the last 52 weeks. HCA Healthcare, Inc. (NYSE:HCA) has a market capitalization of $73.195 billion.

Diamond Hill Large Cap Strategy made the following comment about HCA Healthcare, Inc. (NYSE:HCA) in its Q4 2022 investor letter:

“HCA Healthcare, Inc. (NYSE:HCA)’s stock price continued to advance in Q4 following a difficult first half of 2022. Fortunately, we did not own shares until the end of Q2. Two major factors that are top of mind for investors right now are volumes and labor constraints, both of which continue to normalize albeit at a relatively slow pace. We remain favorable on the longterm fundamentals of the business and the opportunity for HCA to reinvest the large amounts of cash it generates at attractive returns. That said, the discount to our intrinsic value estimate has narrowed significantly following robust returns in the second half of the year.”

Source: Unsplash

HCA Healthcare, Inc. (NYSE:HCA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held HCA Healthcare, Inc. (NYSE:HCA) at the end of the third quarter, which was 63 in the previous quarter.

We discussed HCA Healthcare, Inc. (NYSE:HCA) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.