My current industry selection is HEALTHCARE SECTOR- HOSPITAL. Now in the industr

Question

My current industry selection is HEALTHCARE SECTOR- HOSPITAL.

Now in the industry, I want a company to be analyzed for the purpose of the project for investment. I have carefully considered all the factors that might affect the industry such as degree of competition, demand /supply dynamics, industry cost structure, government regulation, relative financial norms and standards and justified that Healthcare sector will continue to be needed and perform well.

Kindly assist with a company under Healthcare- Hospital that can be good for investment and justify it over 3 other companies in the same industry via key financial ratio analysis

The Equity Analyst Project concludes with a final team assignment. The company analysis is based on your team’s industry selection in the Team Analysis of Select Industry Groups assignment. Your team is next asked to determine which public firm classified within the industry you have selected as the most promising is itself the most promising investment within that industry.

Again, to access more details on any industry group’s public companies go to http://biz.yahoo.com/ic/ind_index.html and click on the name of your group to go to its “Industry Center” page. On each industry’s summary page click on “Company Index” and then on “Public” on the subsequent page next to “View:” to identify the public companies in your industry. You are asked to choose one of these companies in which to invest.

At the list of public companies, you can access each company’s “Industry Center…Company Profile” by clicking on its name. More useful is the company’s stock summary page accessible by clicking on its ticker symbol. Additional comparable financial information is available via the link to “Industry Browser” on the left of the “Industry Center “ page for the industry.

Beyond the information available at Yahoo! Finance more detailed information on any public company is available in the company's annual (10-K) and quarterly (10-Q) SEC filings. The SEC's database of reports is accessible at http://www.sec.gov/edgar/searchedgar/companysearch.html. Please note that searches of the SEC database can be conducted using the company’s stock ticker symbol or its CIK (Central Index Key) number, which is used by the SEC's systems to identify filers. Mergent Online, available via the University’s online library, provides a company's CIK. Alternatively, information is available in the company's annual report (often available on the company's homepage or via http://www.annualreports.com/).

Your team is asked to write a 5-10 page paper providing your analysis of the companies in the selected industry group and your justification of your choice of the best company to invest in within that group.

In conducting your analysis you are strongly encouraged to draw on the material in the textbook’s Chapter 3, specifically 3.1 Financial Statement Analysis, as well as Chapter 6, Stock Valuation. There is also ample support online. Here are a few possibilities:

Explanation / Answer

Health Care-Hospital-Investment Analysis & Comparative Study

Healthcare investing requires a multifaceted approach to understand the underlying drivers. Investors can profit from investments in both the overall sector and/or its industries.

Trends in the Healthcare Sector-specific to hospitals:

Decision on where to invest is driven by many factors like government policies, industry trend and market evolution. We would like to see the trend in favour of hospital healthcare and the cons.

Pros include:

Negative trends include:

The hospital sector is considered to be a naturally defensive choice. Moreover, Obamacare becoming one of the most important government initiatives over the last few years further strengthens the argument for hospital stocks being good investment options.

Our Choice:

Below we present three stocks which will gain from these trends, each of which also has a good Zacks Rank hence, we recommend HCA Holdings, Inc. .

Buy-rated:

HCA Holdings, Inc.: is a healthcare services company.

The holding company, along with its affiliates, operates and owns hospitals and related healthcare facilities.

HCA operates:

HCA operates:

Community Health Systems, Inc. owns and operates hospitals primarily in non-urban areas as well as certain urban areas in the U.S.

Community Health Systems operates:

Community Health Systems:

WHY NO?

Black Rock and Shanda have invested in Community health systems,should investors follow BlackRock and Shanda Group into this company's stock? My view is still a firm no. As, Community Health is still saddled with a mountain of debt and is expected to post a sizable loss in 2018.

On other side possible the groups are buying at rock bottom with a long term vision, but WE RECOMMEND INVESTOR TO STAY AWAY.

Lifepoint Hospitals Inc.

An operator of general acute care hospitals in non-urban areas in the U.S.

Lifepoint Hospitals:

Why No?

LifePoint Health Inc -delivered a less impressive 7.76% ROE over the past year, compared to the 11.76% return generated by its industry. Though LPNT’s recent performance is underwhelming in short run. It could be good in long run perspective.

Recent market activity suggests that the market is slipping into a downtrend. But the prospects for the hospital sector seem to be improving.

Universal Health Services, Inc:

Owns and operates acute care hospitals and Behavioral health facilities, and ambulatory centers. They offer general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, pediatric services, pharmacy services, and/or behavioral health services.

Universal Health Services, Inc:

Good Stock for a long term perspective as it has a solid base and is improvising on facilities.

Best Hospitals Dividend Stocks:

Long run investment in shares of Hospitals which upgrade facilities and are providing medical, diagnostics, and treatment services to those in need. These companies provide a variety of health care facilities such as:

These Companies will offer below-average dividend yields when compared to

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