UHS

Universal Health Services, Inc.
HealthcareMedical Care FacilitiesNASDAQ
$146.11
-$14.70 (-10.06%)today
Conviction
6/ 10
Fair Value$248.76
Upside+70.26%
Signal42.16
Market Cap$11.1B
52W Range$152.33–$246.33
Next EarningsApr 27

Conviction History

Conviction Changes

Apr 7, 2026, 8:26 PM76news-research
Mar 19, 2026, 3:09 AM57conviction-rescore
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Price History

FAIR VALUE ANALYSISMonte Carlo · 3,000 runs · 99% valid
Fair Value$478.39
Current Price$193.47
Upside / Down+147.3%
P(Undervalued)98.7%
P(20%+ Up)96.8%
P(15%+ Down)0.2%

Fair Value Distribution — percentile bands

98.7% of simulations place fair value above current price

WHAT IS PRICED IN

Revenue-Based Reverse DCF

-5.4%/yr

±4.5% · revenue growth to justify current price

FCF-Based Reverse DCF

11.8%/yr

±2.8% · FCF growth to justify current price

THE GAP

Market pricing margin compression or rising capex

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Bull Case

Defensive hospital operator with behavioral health pricing power. Tariff-immune domestic revenue. Mean reversion delivering.

Bear Case

Medicaid funding cuts under DOGE; not yet above 50MA; labor cost margin pressure.

Thesis Breakers

Medicaid reimbursement cut > 10%, prolonged labor shortage

Updated Apr 8

Research Feed

newsApr 7
Conviction: unchanged
BofA Downgrade on Medicaid State Directed Payment Cut Risk; Q1 Earnings April 27

BofA downgraded UHS citing anticipated Medicaid SDP headwinds and policy uncertainty extending into 2027; Q1 2026 earnings on April 27 represent near-term event risk. UBS partially offset by noting UH...

analysisMar 31
Conviction: unchanged
UHS — Acute Care & Behavioral Health Operator With Margin Expansion Story

UHS delivered strong FY2025: 10% revenue growth, 31% adj EPS growth. Behavioral health outpatient expansion (10+ centers in 2026) is key growth driver. 2026 guide: 6-8% rev growth, 4-13% EPS growth de...

sec_10kMar 4
Conviction: unchanged
UHS 10-K FY2025: Medicaid Reform Headwind, Litigation Tail Risk

Medicaid reform legislation creates $432-480M annual headwind by 2032. Litigation tail risk material (Cumberland + Pinnacle). Geographic concentration elevated. Behavioral health segment more attracti...