Here's Why HCA Healthcare (HCA) is a Strong Growth Stock

According to Zacks Investment Research, HCA Healthcare (HCA), the largest non-governmental hospital operator in the U.S., is a stock to watch, possessing a Zacks Rank of #3 (Hold) but a VGM Score of A. HCA is particularly attractive to growth investors, supported by a Growth Style Score of A and a projected 15.2% year-over-year earnings growth for the current fiscal year; nine analysts have raised their fiscal 2025 earnings estimates in the last 60 days, increasing the consensus to $25.29 per share.

Analysis

HCA Healthcare (HCA), the largest non-governmental operator of acute care hospitals in the United States with 190 hospitals and approximately 2,400 ambulatory sites as of year-end 2024, currently holds a Zacks Rank of #3 (Hold). Despite this neutral rating, the company exhibits strong underlying fundamentals, particularly for growth-oriented investors, as evidenced by its 'A' grades for both its VGM (Value, Growth, Momentum) Score and Growth Style Score. HCA is forecasting a significant 15.2% year-over-year earnings growth for the current fiscal year. Reinforcing this positive outlook, nine analysts have revised their earnings estimates upwards for fiscal 2025 within the last 60 days, leading to an increase in the Zacks Consensus Estimate by $0.34 to $25.29 per share for that period. Furthermore, HCA has demonstrated a consistent ability to outperform expectations, boasting an average earnings surprise of 7.1%. The overall sentiment surrounding these developments is positive, with a sentiment score of 0.8, indicating an optimistic outlook based on these metrics.

Key Decisions for Investors

• Investors should note that while HCA Healthcare carries a Zacks Rank #3 (Hold), its A-rated Growth and VGM Style Scores suggest potential for outperformance, particularly as Zacks methodology indicates Hold-rated stocks with A or B scores can still offer upside.
• The projected 15.2% year-over-year earnings growth for the current fiscal year, alongside upward revisions by nine analysts for fiscal 2025 increasing the consensus EPS to $25.29, positions HCA as a potentially attractive option for investors prioritizing growth.
• Given the Hold rating, investors might consider HCA for inclusion on a watchlist, paying close attention to future earnings estimate revisions and any changes in its Zacks Rank or Style Scores to gauge shifts in its investment profile.