Stock Spotlight: Universal Health Services

A high PowerRating and a top-rated industry group? Sounds like a recipe for a Featured Stock Spotlight stock. And today, that stock is Universal Health Services (UHS@UHS | Quote | Chart | News | PowerRating).

When it comes to stocks that make our Featured Stock Spotlight, we look for two things. First, we want to find a stock with a high PowerRating, preferably a 9 or 10. These are the best stocks for active investors and long term traders to put their money into because our research indicates that these high PowerRatings stocks are both more reliable and better performers after one year than the average stock.

The second criteria we look for in a stock that will be part of our Featured Stock Spotlight is a strong industry PowerRating.

Here, we are not nearly as demanding as we are with the individual stocks. Where we want a Long Term PowerRating of 9 or 10 as far as the stock is concerned, when it comes to the industry group, an Industry PowerRating of 7 or higher is enough to put the stock on our Featured Stock Spotlight radar.

Why only 7? While it is certainly ideal to look for and invest in stocks that hail from industries with only the highest PowerRatings, our research indicates that industries with PowerRatings of 7 or higher have actually produced average annualized returns of more than 18% since 1995. Compare this to the average industry group, which has produced average annualized returns of approximately 14.61%.

So where does Universal Health Services fit into all of this?

[UHS004]

Universal Health Services has a Long Term PowerRating of 9. As a 9-rated stock, Universal Health Services belongs to that class of equities that our research indicates tends to be higher one year later more than 79% of the time. Additionally, 9-rated stocks have been strong performers historically speaking, averaging gains of more than 18% after one year. Both of these statistics compare favorably with the average stock.

Universal Health Services is the third largest hospital management company in the United States. The company is in the business of owning and operating a variety of health service facilities, from acute care and surgical hospitals to behavioral health and ambulatory surgery centers. The stock has a P/E of 18.50 and a 52-week price range of 65.42 to 46.21.

Universal Health Services most recently reported quarterly earnings in late April, beating analyst expectations

Looking for more long-term solutions to your investing problems? Don't let the volatility of this market lead you to miss out on stocks you'll be glad to have bought a year from now.

Click here to get a copy of our special, Free Report on the "5 Secrets to Successful Stock Investing,"

Learn what you need to know as an active investor looking to invest in companies with a history of financial strength and a track record for growth. Click the link above or call us at 888-484-8220 extension 1 to get your copy of the "5 Secrets to Successful Stock Investing" today!

David Penn is Senior Editor for PowerRatings.net.