HCA - Is HCA Healthcare a Buy?
HCA Healthcare (NYSE: HCA) is a top owner and operator of medical facilities, including 180-plus hospitals and has roughly 2,200 ambulatory sites of care. The stock gives investors a great way to gain exposure to the healthcare industry. And now that hospitals aren't overrun with cases of COVID-19 and are returning to their normal operations, it could make for a good buy.
However, year to date, shares of HCA are still down 22% (worse than the S&P 500 's decline of 17%) as rising labor costs in previous quarters chipped away at the company's profitability and made investors bearish on the shares. Is this beaten-down healthcare stock truly a deal for investors, or are there problems that should keep you away from it?
One of the drawbacks of HCA's business is that typically there isn't a whole lot of growth due to the nature of its business; the company is dependent on patient volumes and how much it can collect from them and third-party payers. One of the best ways the company can grow is by adding to its portfolio and pursuing acquisitions. Over the past five years, HCA has averaged a decent year-over-year growth rate of 7.5%.
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Is HCA Healthcare a Buy?