Universal Health Services (UHS): A Strong Growth Stock with Impressive Metrics

Universal Health Services (UHS) is a strong growth stock with a Zacks Rank of #3 (Hold) and a Growth Style Score of A. Earnings and sales are forecasted to increase 22.1% and 8.5% YoY, respectively. Five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.91 to $20.28 per share for 2025. UHS boasts an average earnings surprise of 9.4% and has generated cash flow growth of 4.4%.

Universal Health Services (UHS) has been a standout performer in the healthcare sector, demonstrating resilience and growth despite recent analyst revisions. The company, headquartered in King of Prussia, PA, owns and operates a diverse range of healthcare facilities, including acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers.

UHS is currently ranked as a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and a VGM Score of A. Its forward P/E ratio stands at 8.8X for the current fiscal year, compared to the Medical - Hospital industry's P/E of 9.9X. Additionally, UHS boasts a PEG Ratio of 0.7 and a Price/Cash Flow ratio of 6.7X, making it an attractive option for value investors [1].

The company's strong financial performance is reflected in its recent earnings estimates. Five analysts revised their earnings estimate upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.91 to $20.28 per share for 2025. UHS has an average earnings surprise of 9.4%, indicating consistent performance [1].

UHS's revenue growth is projected to increase by 8.5% YoY, while earnings are forecasted to rise by 22.1% YoY. The company's cash flow growth has been robust, with a 4.4% increase in the last year [1]. These projections suggest that UHS is well-positioned for future growth.

Despite the positive outlook, analysts have recently adjusted their price targets for UHS. Wells Fargo & Company, for instance, lowered its price target from $220 to $210, while maintaining an overweight rating. This adjustment reflects a balanced view of UHS's recent performance and future growth prospects [2].

In the second quarter of 2025, UHS reported strong financial results, with revenue increasing by 9.6% to $4.28 billion and net income rising by 22% to $353.2 million. The company's earnings per share (EPS) also improved, climbing to $5.49 from $4.32 in the same period last year. These results exceeded analyst expectations [2].

Looking ahead, UHS has a revenue growth forecast of 4.9% per annum over the next three years, compared to the broader healthcare industry's projected growth rate of 6.0% in the U.S. The company's shares have been trading at $172.30, which is currently below the analyst's predicted range of $195.00 to $215.00 [2].

In conclusion, Universal Health Services continues to demonstrate resilience and growth despite recent analyst revisions. The company's strong financial performance, robust cash flow growth, and positive earnings estimates make it an attractive investment option for value and growth investors. However, investors should closely monitor the company's performance and adjust their strategies accordingly.

References:
[1] https://finance.yahoo.com/news/heres-why-universal-health-services-134003672.html
[2] https://www.ainvest.com/news/universal-health-services-resilient-diversified-healthcare-company-key-business-engines-2508/