Valued at $12.4 billion by market cap, Pennsylvania-based Universal Health Services, Inc. (UHS) is among the nation's leading providers of hospital and healthcare services. Universal Health serves communities across 39 U.S. states, Washington, D.C., Puerto Rico, and the United Kingdom. The company is anticipated to announce its Q2 earnings results on Tuesday, July 23. 

Ahead of this event, analysts are expecting UHS to report a profit of $3.29 per share, up 30% from $2.53 per share in the year-ago quarter. The company holds an impressive track record of surpassing Wall Street's bottom-line estimates each of the last four quarters. The company's adjusted EPS for the last reported quarter jumped a notable 58.1% year over year to $3.70, outpacing the consensus EPS estimate by a solid 17.8% margin.

For fiscal 2024, analysts expect UHS to report EPS of $13.76, up 30.6% from $10.54 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow by 9% annually to $15.00.

Shares of Universal Health have soared 21.6% on a YTD basis, overshadowing the broader S&P 500 Index’s ($SPX) 16.1% gains over the same period. Plus, zooming in further, the stock has also outpaced the S&P Healthcare Services SPDR’s (XHS) marginal returns over the same time frame.

On April 24, Universal Health Services announced its better-than-expected Q1 earnings results, triggering a marginal surge in its share on the same day. Adding to the momentum, on June 26, the stock surged nearly 1% following an upgrade to “Outperform” by Baird, citing confidence in the firm's improved financial performance. This bullish upgrade from Baird further boosted investor confidence. 

Analysts' consensus rating on UHS stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, nine recommend a "Strong Buy," seven suggest “Hold,” and the remaining one gives a "Strong Sell" rating. This configuration is slightly more bullish than a month ago, with eight “Strong Buy” ratings. 

The average analyst price target for UHS is $197.93, suggesting a potential upside of only 6.8% 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.