UHS Shares Decline as CFO Cites Slowed Care Volume
The decline in UHS shares presents an opportunity for investors to reconsider their investment strategy, as the company's intrinsic value and expected earnings growth indicate a potential for long-term success. With a solid future ahead, investors may want to take a closer look at UHS stock and consider increasing their holdings or making a new investment.
Universal Health Services (UHS) shares experienced a decline of nearly 6% after CFO Steve Filton stated that the volume of care people are seeking has slowed down, despite a surge in voluntary procedures post-pandemic. The company's CFO attributed this to "somewhat softer procedural or surgical volumes" in recent quarters, which has not recovered to historical levels as expected.
The decline in share price can be attributed to the company's expectation of slower growth in the volume of care. However, despite this, UHS has maintained stable revenue due to price increases. The company's CFO projected that margins in the acute care business will revert to pre-pandemic levels within the next 18 to 24 months, which is a positive sign for investors. This projection indicates that the company is expecting a return to normalcy in the coming years, which could lead to robust cash flows and a higher share value.
Universal Health Services, Inc. (NYSE:UHS) is currently undervalued, with an intrinsic value of $229.43 and a trading price of $173. The company's share price is volatile, with a high beta indicating significant market movement. Despite the current decline, the company's earnings growth is expected to be in the teens in the upcoming years, indicating a solid future ahead. This could lead to increased investor confidence and a potential surge in share price.
Investors considering UHS stock should take into account factors such as financial health and balance sheet strength before making a decision. While the current decline may be a cause for concern, the company's long-term prospects and potential for growth make it an attractive option for investors looking to increase their holdings or make a new investment.