The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Universal Health Services (NYSE: UHS) and the rest of the hospital chains stocks fared in Q4.

Hospital chains operate scale-driven businesses that rely on patient volumes, efficient operations, and favorable payer contracts to drive revenue and profitability. These organizations benefit from the essential nature of their services, which ensures consistent demand, particularly as populations age and chronic diseases become more prevalent. However, profitability can be pressured by rising labor costs, regulatory requirements, and the challenges of balancing care quality with cost efficiency. Dependence on government and private insurance reimbursements also introduces financial uncertainty. Looking ahead, hospital chains stand to benefit from tailwinds such as increasing healthcare utilization driven by an aging population that generally has higher incidents of disease. AI can also be a tailwind in areas such as predictive analytics for more personalized treatment and efficiency (intake, staffing, resourcing allocation). However, the sector faces potential headwinds such as labor shortages that could push up wages as well as substantial investments needs for digital infrastructure to support telehealth and electronic health records. Regulatory scrutiny, and reimbursement cuts are also looming topics that could further strain margins.

The 4 hospital chains stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.

Luckily, hospital chains stocks have performed well with share prices up 15.9% on average since the latest earnings results.

Universal Health Services (NYSE: UHS)

With a network spanning 39 states and three countries, Universal Health Services (NYSE: UHS) operates acute care hospitals and behavioral health facilities across the United States, United Kingdom, and Puerto Rico.

Universal Health Services reported revenues of $4.49 billion, up 9.1% year on year. This print fell short of analysts’ expectations by 0.6%, but it was still a satisfactory quarter for the company with full-year revenue guidance beating analysts’ expectations but a slight miss of analysts’ revenue estimates.

Universal Health Services pulled off the fastest revenue growth and highest full-year guidance raise of the whole group. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 25.8% since reporting and currently trades at $204.84.

Is now the time to buy Universal Health Services? Access our full analysis of the earnings results here, it’s free.

Best Q4: Tenet Healthcare (NYSE: THC)

With a network spanning nine states and serving primarily urban and suburban communities, Tenet Healthcare (NYSE: THC) operates a nationwide network of hospitals, ambulatory surgery centers, and outpatient facilities providing acute care and specialty healthcare services.

Tenet Healthcare reported revenues of $5.53 billion, up 9% year on year, outperforming analysts’ expectations by 1.1%. The business had a strong quarter with an impressive beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 25.8% since reporting. It currently trades at $242.86.

Is now the time to buy Tenet Healthcare? Access our full analysis of the earnings results here, it’s free.

Slowest Q4: HCA Healthcare (NYSE: HCA)

With roots dating back to 1968 and a network spanning 20 states, HCA Healthcare (NYSE: HCA) operates a network of 190 hospitals and 150+ outpatient facilities providing a full range of medical services across the US and England.

HCA Healthcare reported revenues of $19.51 billion, up 6.7% year on year, falling short of analysts’ expectations by 1%. It was a mixed quarter as it posted a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.

HCA Healthcare delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 14.7% since the results and currently trades at $541.75.

Read our full analysis of HCA Healthcare’s results here.

Acadia Healthcare (NASDAQ: ACHC)

With a network of over 250 facilities serving patients in 38 states and Puerto Rico, Acadia Healthcare (NASDAQ: ACHC) operates facilities providing mental health and substance use disorder treatment services across the United States.

Acadia Healthcare reported revenues of $821.5 million, up 6.1% year on year. This print beat analysts’ expectations by 2.8%. Zooming out, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but a significant miss of analysts’ full-year EPS guidance estimates.

Acadia Healthcare pulled off the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is up 34.4% since reporting and currently trades at $23.07.

Read our full, actionable report on Acadia Healthcare here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.