Universal Health Services, Inc. (UHS) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Universal Health Services (UHS)? Shares have been on the move with the stock up 11.4% over the past month. The stock hit a new 52-week high of $231.37 in the previous session. Universal Health Services has gained 27.3% since the start of the year compared to the 5.7% move for the Zacks Medical sector and the 26.6% return for the Zacks Medical - Hospital industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 27, 2025, Universal Health Services reported EPS of $5.69 versus consensus estimate of $4.66.For the current fiscal year, Universal Health Services is expected to post earnings of $21.67 per share on $17.36 in revenues. This represents a 30.46% change in EPS on a 9.7% change in revenues. For the next fiscal year, the company is expected to earn $23.34 per share on $18.23 in revenues. This represents a year-over-year change of 7.71% and 5.01%, respectively.Valuation MetricsUniversal Health Services may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Universal Health Services has a Value Score of A. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 10.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 8.9X. On a trailing cash flow basis, the stock currently trades at 8.6X versus its peer group's average of 8.6X. Additionally, the stock has a PEG ratio of 0.78. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Universal Health Services an interesting choice for value investors.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Universal Health Services currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Universal Health Services meets the list of requirements. Thus, it seems as though Universal Health Services shares could have potential in the weeks and months to come.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Universal Health Services, Inc. (UHS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks