How HCA Healthcare Stock Gained 30%
HCA Healthcare (HCA)’s stock jumped 32%, powered more by a sharp 23% surge in its P/E multiple than modest gains in revenue and margins. Behind the rally: stronger-than-expected Q2 and Q3 earnings, boosted guidance, analyst upgrades, and smart capital moves—all sparking renewed investor confidence.
| 7302025 | 10282025 | Change | |
|---|---|---|---|
| Stock Price ($) | 354.4 | 466.5 | 31.6% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 71,585.0 | 72,698.0 | 1.6% |
| Net Income Margin (%) | 8.1% | 8.2% | 1.7% |
| P/E Multiple | 15.1 | 18.7 | 23.4% |
| Shares Outstanding (Mil) | 246.9 | 239.2 | 3.1% |
| Cumulative Contribution | 31.5% |
So what is happening here? The stock surged 32%, driven mainly by a 23% boost in P/E multiple, alongside modest revenue and margin increases of 1.6% and 1.7%, setting the stage for deeper business insights.
Before we get into details of events that led to stock surge, here is what market wisdom says: Strategic asset allocation and diversification helps you stay invested. Did you know investors who panicked out of the S&P in 2020 lost significant upside that followed? Trefis High Quality Portfolio and Empirical Asset Management’s asset allocation approach are designed to reduce volatility so you can stay the course.
Here Is Why HCA Healthcare Stock Moved
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- Q2 Earnings Beat: HCA reported Q2 diluted EPS of $6.83 (+23.5% YoY) on $18.6B revenue, beating forecasts.
- Q3 Earnings Outperform: HCA reported Q3 diluted EPS of $6.96 (+42.6% YoY) on $19.16B revenue, beating estimates.
- Raised FY25 Guidance: HCA raised full-year 2025 revenue outlook to $75B-$76.5B and net income to $6.5B-$6.72B.
- Analyst PT Upgrades: Multiple firms raised price targets, including Goldman Sachs to $520 and UBS to $525.
- Capital Allocation: HCA repurchased $2.5B in Q3 shares and declared a $0.72 quarterly dividend.
Our Current Assesment Of HCA Stock
Opinion: We currently find HCA stock fairly priced. Why so? Have a look at the full story. Read Buy or Sell HCA Stock to see what drives our current opinion.
Risk: To get a handle on HCA’s risk, check how far it fell in past market crashes. During the 2018 correction, it dropped about 23%. The Covid pandemic hit much harder, with a sharp 55% decline. Then the inflation shock pulled it down nearly 40%. These dips show that even with solid fundamentals, HCA isn’t immune to significant pullbacks when broader markets get rattled. Good quality stocks help, but big shocks still take a toll.
Picking winners on a consistent basis is not an easy task – especially given the volatility associated with a single stock. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.