With a market cap of $85.5 billion, Tennessee-based HCA Healthcare, Inc. (HCA) is one of the largest non-governmental operators of acute care hospitals in the U.S. The company manages hospitals and related healthcare entities, offering a range of outpatient services such as surgery, laboratory tests, radiology, respiratory therapy, cardiology, and physical therapy. The company is slated to announce its fiscal Q2 earnings results on Tuesday, July 23. 

Ahead of this event, analysts are expecting HCA to report a profit of $4.91 per share, up 14.5% from $4.29 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the last four quarters while missing on one other occasion. The company's adjusted EPS for the last reported quarter jumped 8.7% year over year to $5.36, outpacing the consensus EPS estimate by nearly 7%.

For fiscal 2024, analysts expect HCA Healthcare to report EPS of $20.92, up 10.1% from $19.01 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow by 10.9% annually to $23.19.

Shares of HCA Healthcare have surged almost 20.6% on a YTD basis, sailing past the broader S&P 500 Index’s ($SPX) 16.1% gains over the same period. Additionally, it has easily outpaced the S&P Healthcare Services SPDR’s (XHS) marginal returns over the same time frame.

Despite early challenges like fluctuating occupancy rates and a heightened reliance on costly contract labor during the pandemic, Investors are attracted to the company's significant advantage in the healthcare industry, bolstered by enduring relationships that create substantial barriers for newcomers. 

Furthermore, after HCA Healthcare revealed its better-than-expected Q1 earnings results on April 26, the stock soared nearly 1.5% the next day. A surge in patient volumes and a spike in surgical procedures powered its impressive revenue boost, fueling the positive market sentiment toward the stock.

Analysts' consensus rating on HCA stock is highly bullish, with a "Strong Buy" rating overall. Among 22 analysts covering the stock, 16 recommend a "Strong Buy," two suggest a “Moderate Buy,” and the remaining four give a "Hold" rating. This configuration is slightly more bullish than three months ago, with 14 “Strong Buy” ratings on the stock. 

The average analyst price target for HCA is $346.27, suggesting a potential upside of just 6% from the current levels.

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On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.