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HCA - Is Healthcare Worth Considering Now?

לונג
NYSE:HCA   HCA Healthcare, Inc.
Given that we are coming out of pandemic now and the pressure on hospitals is going to reduce is it worth picking up hospital operator for a potential 30% upside?

Fundamental indicators:
  • Revenue and Profits - demonstrated consistent long-term earnings growth over the past 10 years. However, increasing wages are eating into the profits
  • Profit margin - low margin with 8.7% in 2021
  • P/E - very attractive 9.9x ratio compared to 22x for the whole market
  • Liabilities - historically liabilities are on the level with assets, and debt to shareholder equity is negative

Technical Analysis (Elliott Waves):
  • Since March 2020 crash HCA has enjoyed a good rally peaking in April 2022
  • The sharp drop from the historic high is indicating that there was an Expanded Flat correction formed with an impulse in wave C
  • Since then there was a zigzag like movement to the upside which indicates that an Ending Diagonal is potentially forming. However, at this stage it is difficult to predict how the waves are going to develop at this stage
  • If the proposed scenario is correct we can expect waves 3 and 5 also formed by zigzags and correction in wave 4 intruding into the territory of wave 1

Let's see how it develops further.
What do you think about this scenario for HCA ?

Please share your thoughts in the comments and like this idea if you agree wit it.
Also let me know if you would like to see other stocks analysed using Elliott Waves.

Thanks

In search of the optimal signals
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