This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Analyst Sees Hospital Stocks Continuing To Rise


TRENTON, N.J. (AP) â¿¿ A Jefferies analyst recommended buying hospital stocks on Monday, saying their rally this year should continue as many uninsured patients get coverage due to the Affordable Care Act.

Jefferies analyst Brian Tanquilut noted that stocks of publicly traded hospitals already have risen this year by 32 percent as a group.

"We continue to believe that 'reform' will end up having a net positive impact for most hospitals as bad debt for the group should decline notably as a result of insurance coverage expansion," he wrote in a report to investors.

Bad debt, meaning bills patients cannot or will not pay, has long been a problem for hospitals. It tends to increase during periods of high unemployment, as people lose job-related health insurance.

Under the Obama administration's health care overhaul, roughly 30 million uninsured Americans are expected to gain coverage either through new health care marketplaces, called exchanges, or through expansion of Medicaid, the state-federal program that provides health care to the poor and disabled.

In two additional reports, Tanquilut changed his ratings from 'Hold' to 'Buy' for two big hospital chains â¿¿ Community Health Systems, with 135 hospitals and more than 20,000 beds in 29 states, and Health Management Associates, which has 70 hospitals with about 10,500 beds, mainly in rural areas in the South.

The analyst also nearly doubled his 12-month price targets for both those systems. He raised Health Management Associates from $7.50 per share to $14.50, and Community Health from $29 per share to $56.

The other two hospital chains cited in the report are HCA Holdings Inc., rated as a 'Buy' with a $37.92 price target, and Tenet Healthcare Corp., also rated a 'Buy' with a $44.22 price target.

Shares of all four companies barely budged Monday. HCA fell 14 cents to $37.78 per share, Community Health dipped 9 cents to $44.34, Tenet declined 1 cent to $44.21 and Health Management edged up 7 cents to $12.33.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs