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Bull’s Eye Report: Universal Health Services (UHS)

UHS is the strongest of the bunch in healthcare facilities


At, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
Universal Health Services Inc UHS Health Care Facilities 9.2 +25.70% $59.08

Why We Like The Stock:

Universal Health Services (NYSE:UHS) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) in the healthcare facilities sub-industry. Healthcare facilities stocks have generally pulled back in early April, as noted on the charts of Tenet Healthcare Corp. (NYSE:THC), Community Health Systems (NYSE:CYH), Brookdale Senior Living (NYSE:BKD), and Health Management Associates (NYSE:HMA).

However, UHS is a much better looking chart than this bunch – USH is the only one to hold above its 50-day moving average during the recent pullback, the pullback was significantly less severe, and it looks like UHS is turning a corner today as it breaks above its short term moving averages (rather than having a good day amidst a downtrend, which may be the case with a chart like THC). We like UHS at current prices as long as it can hold above Tuesday’s intraday low at $59.08, which we would use as a stop. Our goal on a short-term trade would be around $66, which the stock flirted with April 2. Healthcare facilities stocks look to be turning a corner, and we like UHS as the best out of this group.

We Would Be Buyers:

At the current price (~$61.45), or on a pullback to the 50-day moving average ($60.32).

Company Profile:

Universal Health Services, Inc.owns and operates through its subsidiaries, acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers. As of February 28, 2013, it owned and/or operated 23 acute care hospitals and 197 behavioral health centers located in 37 states, Washington, D.C., Puerto Rico and the United States, Virgin Islands. Its operating segments consists of acute care hospital services and behavioral health care services. In October, 2012, it acquired Ascend Health Corporation (Ascend). Ascend was the private behavioral health provider with nine owned or leased freestanding inpatient facilities located in five states. In October of 2012, it completed the divestiture of Auburn Regional Medical Center (Auburn), a 159-bed acute care hospital located in Auburn, Washington.

Stock Rating: 9.2

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Universal Health Services – Last Three Months


Universal Health Services – Last 12 Months


Universal Health Services – Last Five Years

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At the time of publication the editor and affiliated companies own the following positions: UHS

Note: Positions may be bought or sold while this publication is in circulation without notice.

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