Hospital stocks including Universal Health Services (UHS) - Get Report are getting a boost on Monday, a continuation from Friday when it became clear that the Affordable Care Act, or Obamacare, would remain the "law of the land" in the U.S., ensuring patients entering emergency rooms will be able to pay for the visit.
Shares of Universal Health Services were gaining by 3.77% to $126.49 this afternoon.
Mizuho upgraded its rating on the stock to "buy" from "neutral" following Friday's news. Republican attempts to repeal and replace Obamacare failed to get through the House of Representatives.
"With the failure of the GOP to move the ACA repeal out of the House, our covered hospital companies have moved into a nicer, friendlier neighborhood, one that includes continuation of the important benefit of the Medicaid expansion and without a near- or medium-term threat of block grants (although that could resurface as a 'pay-for' for tax reform later)," Mizuho said in a note, according to Barron's.