UBS Raises Universal Health Services, Inc. (UHS) Target on Earnings Momentum

Universal Health Services, Inc. (NYSE:UHS) is among the 10 Best Affordable Stocks to Invest In for the Long Term.

On February 27, UBS analyst AJ Rice raised the firm’s price target on Universal Health Services, Inc. (NYSE:UHS) to $320 from $302 and maintained a Buy rating, reflecting confidence in the company’s earnings momentum and forward guidance.

On February 25, Universal Health Services, Inc. (NYSE:UHS) reported fourth-quarter 2025 results, delivering revenue growth of 9%, adjusted EBITDA net of noncontrolling interests growth of 10%, and adjusted EPS growth of 20% compared to the prior-year quarter. For full-year 2025, revenue increased 10%, adjusted EBITDA net of NCI rose 15%, and adjusted EPS advanced 31% year-over-year.

During 2025, the company repurchased 4.65 million shares for $899 million, including 1.46 million shares in the fourth quarter, with $1.425 billion of buyback authorization remaining at year-end and approximately $900 million available under its revolving credit facility. For 2026, UHS guided revenue of $18.4 billion to $18.8 billion, adjusted EBITDA net of NCI of $2.64 billion to $2.79 billion, and adjusted EPS of $22.64 to $24.52, implying continued earnings growth supported by same-facility volume increases and disciplined pricing.

Headquartered in King of Prussia, Pennsylvania, Universal Health Services, Inc. (NYSE:UHS) is third in the list of 10 best affordable stocks to invest in for the long term. The company provides hospital and healthcare services through more than 400 acute care hospitals, behavioral health facilities, outpatient centers, and ambulatory care access points across the United States, Puerto Rico, and the United Kingdom.

While we acknowledge the potential of UHS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 12 Cheap Stocks That Will Go to the Moon According to Reddit and 10 Best Oil & Gas Drilling Stocks to Buy.

Disclosure: None. Follow Insider Monkey on Google News.