NEW YORK (TheStreet) -- Shares of HCA Holdings (HCA) were gaining 9.1% to $90.96 on heavy trading volume after the Supreme Court ruled the federal government can continue issuing subsidies to Americans through the Affordable Care Act, also known as Obamacare.
In a 6-3 decision the Supreme Court ruled that the U.S. government can provide subsidies to Americans living in states that did not set up their own health insurance exchanges through the ACA. "Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them," Chief Justice Roberts wrote for the court.
About 6.5 million American could have lost their credits for healthcare if the Supreme Court ruled against the ACA, according to the Wall Street Journal.
Hospital stocks such as HCA jumped following the ruling as the ACA helps patients pay for their care.
About 7.8 million shares of HCA Holdings were traded by 10:52 a.m. Thursday, above the company's average trading volume of about 3 million shares a day.
TheStreet Ratings team rates HCA HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HCA HOLDINGS INC (HCA) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins."