With a market cap of $12.4 billion, Universal Health Services, Inc. (UHS) owns and operates acute care hospitals, and outpatient and behavioral health care facilities. Founded in 1978, the King of Prussia, Pennsylvania-based company operates through Acute Care Hospital Services and Behavioral Health Care Services segments.

Shares of the healthcare provider have fallen behind the broader market over the past year but have outperformed in 2025. UHS stock has surged 4.3% over the past 52 weeks and 4% on a YTD basis. In comparison, the S&P 500 Index ($SPX) has returned 10.1% over the past year and declined marginally in 2025.

Narrowing the focus, UHS has outperformed the Health Care Select Sector SPDR Fund’s (XLV) 10.9% fall over the past 52 weeks and its 5.1% decline this year.

On Apr. 28, UHS rose marginally following the release of its Q1 earnings. The company’s revenue grew 6.7% year-on-year to $4.1 billion but missed the analyst estimates. The company’s operating margin came in at $11.1%, flat year-over-year. Moreover, UHS’ adjusted earnings for the quarter came in at $4.84 and successfully beat the consensus estimates by 11%.

For the current year ending in December, analysts expect UHS’ EPS to increase 15.6% year over year to $19.36. Moreover, the company has surpassed analysts’ consensus estimates in three of the past four quarters, while missing on one occasion.

Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings and 10 “Holds.”

This configuration has remained mostly stable in recent months.

On Apr. 30, RBC Capital analyst Ben Hendrix maintained a “Hold” rating on Universal Health stock and lowered its price target from $211 to $201.

UHS’ mean price target of $226 indicates a premium of 21.1% from the current market prices. Its Street-high target of $280 suggests a robust 50% upside potential from current price levels.