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Prussia, Pennsylvania-based Universal Health Services, Inc. (UHS) owns and operates acute care hospitals, and outpatient and behavioral health care facilities. With a market cap of $9.6 billion, the company provides acute care hospitals, behavioral health, and surgery centers. It provides services such as general surgery, internal medicine, radiology, and pediatric services.
Shares of this health care giant have notably underperformed the broader market over the past year. UHS has declined 15.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.9%. In 2026, UHS stock is down 27.6%, compared to the SPX’s 9.2% rise on a YTD basis.
Narrowing the focus, UHS’ underperformance is also apparent compared to State Street SPDR S&P Health Care Services ETF (XHS). The exchange-traded fund has gained about 18.6% over the past year. Moreover, the ETF’s 6.4% gains on a YTD basis outshine the stock’s double-digit losses over the same time frame.
On Apr. 27, UHS shares closed up by 3% after reporting its Q1 results. Its adjusted EPS of $5.62 surpassed Wall Street expectations of $5.29. The company’s revenue was $4.5 billion, surpassing Wall Street forecasts of $4.4 billion.
For the current fiscal year, ending in December, analysts expect UHS’ EPS to grow 7.4% to $23.34 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 19 analysts covering UHS stock, the consensus is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, 11 “Holds,” and one “Moderate Sell.”
This configuration is less bullish than a month ago, with one analyst suggesting a “Moderate Buy.”
On May 22, Benjamin Rossi from JPMorgan Chase & Co. (JPM) maintained a “Hold” rating on UHS, with a price target of $205, implying a potential upside of 29.9% from current levels.
The mean price target of $226.27 represents a 43.4% premium to UHS’ current price levels. The Street-high price target of $310 suggests an ambitious upside potential of 96.5%.
