3 Upgraded Stocks to Put on Your Radar This Week

NYSE: HCA | HCA Healthcare Inc. News, Ratings, and Charts

HCA – With the expected continuation of monetary policy tightening, the economy is anticipated to witness a slowdown this year. Amid an uncertain economic backdrop, it could be wise to add fundamentally sound stocks HCA Healthcare (HCA), Yum! Brands (YUM) and DocuSign (DOCU) to your watchlist this week. These stocks have been recently upgraded in our proprietary rating system. Keep reading….

According to data released by the Commerce Department, the Consumer Price Index (CPI) increased 6.5% year-over-year last month, lower than 7.1% in November. Inflation declined for the sixth consecutive month after peaking at 9.1% annually in June. Therefore, the Federal Reserve will likely lower its interest rate hike at its upcoming FOMO meeting.

Investors broadly expect the Fed to increase rates by 25 basis points (bps) this Wednesday, a downshift from a 50-bps hike in December. Fed Governor, Christopher Waller, has joined other policymakers in backing the slowdown in the next rate hike to 25 bps but anticipates continued tightening going forward to curb inflation and bring it close to the central bank’s 2% target.

The tightening of monetary policy is expected to lead to an economic slowdown this year. Moreover, the economy rose by 2.9% in the last three months of 2022, surpassing the consensus forecast of 2.6%. But the growth declined from 3.2% in the third quarter.

The World Bank expects growth in the United States to drop to 0.5% this year, 1.9 percentage points below prior forecasts and the weakest performance outside of recessions since 1970.

Given the uncertain economic conditions, it could be wise to put fundamentally strong stocks HCA Healthcare, Inc. (HCA), Yum! Brands, Inc. (YUM) and DocuSign, Inc. (DOCU) on your radar this week. These stocks have been recently upgraded in our proprietary POWR Ratings system.

HCA Healthcare, Inc. (HCA)

HCA is a healthcare services company that owns and operates general and acute care hospitals offering medical, surgical, emergency, and outpatient services. The company operates more than 182 hospitals, including 175 general and acute care hospitals, five psychiatric hospitals, and two rehabilitation hospitals; 125 freestanding surgery centers; and 21 freestanding endoscopy centers.

On December 13, 2022, HCA announced its enterprise-wide adopted Enhanced Surgical Recovery (ESR) program. The ESR program is a patient-centered, research-based, and multidisciplinary approach to surgical recovery and has been adopted by 167 HCA Healthcare facilities.

HCA’s trailing-12-month EBITDA margin of 19.96% is 435.7% higher than the 3.73% industry average. Likewise, its trailing-12-month net income margin of 9.37% compares to the industry average of negative 5.61%.

For the fiscal fourth quarter ended December 31, 2022, HCA reported revenue of $15.50 billion, compared to $15.06 billion in the prior-year quarter. Its adjusted EBITDA totaled $3.18 billion, compared to $3.15 billion in the fourth quarter of 2021. In addition, net income attributable to HCA was $2.08 billion and $7.28 per share, up 14.7% and 26.6% year-over-year, respectively.

Analysts expect HCA’s revenue and EPS for the current fiscal year (ending December 2023) to increase 4.2% and 5.7% year-over-year to $62.77 billion and $17.85, respectively. The company’s revenue and EPS for the next year are estimated to grow 5.9% and 14.9% from the prior year to $66.44 billion and $20.50, respectively.

Over the past six months, the stock has gained 24.5% to close the last trading session at $254.77.

HCA’s POWR Ratings reflect this promising outlook. On January 25, 2023, the stock’s overall rating was upgraded to an A, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting. 

HCA has an A grade for Sentiment and a B for Value, Stability, and Quality. Within the Medical – Hospitals industry, it is ranked first among 12 stocks. Click here for the additional POWR Ratings for Momentum and Growth for HCA.

Yum! Brands, Inc. (YUM)

YUM operates and franchises quick-service restaurants worldwide. The company operates through four segments: the KFC Division; the Taco Bell Division; the Pizza Hut Division; and the Habit Burger Grill Division.

On January 10, 2023, Pizza Hut announced the return of its famous 16” New York-style pizza, “The Big New Yorker,” after its initial launch 24 years ago. The iconic pizza will be available at participating restaurants nationwide starting February 1, 2023. The relaunch of this iconic fan-favorite pizza is expected to boost the company’s revenue streams.

Also, on October 18, 2022, Pizza Hut entered the handheld category with its latest innovative offering, Pizza Hut Melts™. They are great for a quick savory snack, lunch, or on-the-go dinner for just $6.99 at participating restaurants. The launch of a new product offering might boost the company’s profitability.

YUM’s trailing-12-month gross profit margin of 48.19% is 35.5% higher than the 35.58% industry average. Also, its trailing-12-month EBITDA margin of 33.40% compares to the industry average of 11.11%. Likewise, the stock’s trailing-12-month net income margin of 19.13% is 269.3% higher than the industry average of 5.18%.

For the fiscal third quarter ended September 30, 2022, YUM’s revenues totaled $1.64 billion, compared to $1.61 billion in the previous year’s quarter, while revenues from Taco Bell Division was $568 million, up 6.4% year-over-year. Its operating profit was $546 million, compared to $527 million in the year-ago period.

The consensus EPS estimate of $5.17 for the fiscal year (ending December 2023) indicates a 15.6% year-over-year improvement. Likewise, the consensus revenue of $7.16 billion for the ongoing year indicates a rise of 6.1% from the prior year.

Shares of YUM have gained 6.3% over the past six months to close the last trading session at $128.13.

YUM’s strong fundamentals are reflected in its POWR Ratings. On January 20, the stock’s overall rating was upgraded to B, which equates to a Buy in our POWR Ratings system.

YUM has an A grade for Quality and a B for Sentiment. Among the 45 stocks in the B-rated Restaurants industry, it’s ranked #17.

Beyond what is stated above, we have also rated YUM for Momentum, Growth, Value, and Stability. Get all YUM ratings here.

DocuSign, Inc. (DOCU)

DOCU provides electronic signature software internationally. The company offers e-signature solutions, CLM, Gen for Salesforce, Negotiate for Salesforce, analyzer, CLM+, and guided forums for various consumer applications. It serves enterprise, commercial and small businesses and sells its products through direct, partner-assisted, and web-based sales.

DOCU’s trailing-12-month gross profit margin of 48.19% is 35.5% higher than the 35.58% industry average. Also, its trailing-12-month EBITDA margin of 33.40% compares to the industry average of 11.11%. Likewise, the stock’s trailing-12-month net income margin of 19.13% is 269.3% higher than the industry average of 5.18%.

DOCU’s total revenue increased 18.3% year-over-year to $645.46 million in its fiscal third quarter ended October 31, 2022. Its gross profit increased 20.1% year-over-year to $515.92 million. In addition, the company’s subscription revenue was $624.05 million, up 18.1% year-over-year.

Analysts expect DOCU’s revenue for its fiscal year ending January 2024 to come in at $2.69 billion, representing a 7.8% rise year-over-year. The company’s EPS is expected to increase 11.5% year-over-year in the same year to $2.15. The company has an impressive earnings surprise history as it surpassed the consensus EPS estimates in three of the trailing four quarters.

The stock has gained 13.7% over the past month to close its last trading session at $59.25.

DOCU’s fundamental strength is reflected in its POWR Ratings. The stock was upgraded on January 25 to an overall rating of B, which translates to Buy in our proprietary POWR Ratings system.

DOCU is also rated an A in Growth and a B in Quality. Within the Software – SAAS industry, it is ranked #6 of 25 stocks.

Click here to access additional POWR Ratings for Value, Momentum, Sentiment, and Stability for DOCU.

Consider This Before Placing Your Next Trade…

We are still in the midst of a bear market.

Yes, some special stocks may go up. But most will tumble as the bear market claws ever lower.

That is why you need to discover the brand new “Stock Trading Plan for 2023” created by 40-year investment veteran Steve Reitmeister. There he explains:

  • Why it’s still a bear market
  • How low stocks will go
  • 9 simple trades to profit on the way down
  • Bonus: 2 trades with 100%+ upside when the bull market returns

You owe it to yourself to watch this timely presentation before placing your next trade.

Stock Trading Plan for 2023 > 


HCA shares were unchanged in premarket trading Monday. Year-to-date, HCA has gained 6.17%, versus a 6.08% rise in the benchmark S&P 500 index during the same period.


About the Author: Mangeet Kaur Bouns


Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
HCAGet RatingGet RatingGet Rating
YUMGet RatingGet RatingGet Rating
DOCUGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Should Investors BEWARE this Market?

The S&P 500 (SPY) has been on a tear since November 1st when the Fed started to make their dovish tilt opening the door to future rate cuts. Unfortunately they keep not happening and start date keeps getting pushed further and further out. That has many wondering if stocks are getting ahead of themselves setting things up for a fall. Thus a good time to tune into what investment veteran Steve Reitmeister has to say about the market outlook along with his trading plan and top picks to stay ahead of the pack. Read on below for more...

Top 4 Tech Giants Poised for Explosive Growth

Fueled by the ever-growing demand for advanced technological solutions across various sectors and ongoing innovation, the tech industry has robust growth prospects. Thus, it could be wise to invest in top tech stocks Dropbox (DBX), TTM Technologies (TTMI), Lantronix (LTRX) and AstroNova (ALOT) for potential growth. Continue reading…

3 Top Rated Software Stocks to Streamline Your Investments

The software industry is thriving with soaring demand, presenting ample investment opportunities. So, fundamentally solid software stocks ServiceNow (NOW), Autodesk (ADSK), and Docebo (DCBO) might be ideal buys for promising returns. Read on...

Biotech Investors: Should You Buy, Hold, or Sell Moderna (MRNA) and Arrowhead Pharmaceuticals (ARWR)?

Despite facing several challenges, the biotech sector thrives due to growing demand for effective treatments, consistent innovations, and a sustained demand for high-quality drugs and therapies. Let's assess whether one should Buy, Hold, or Sell biotech stocks Moderna (MRNA) and Arrowhead Pharmaceuticals (ARWR). Keep reading...

Is the Bull Market Growing Tired?

On the one hand it is fun to celebrate the new highs for the S&P 500 (SPY) that came in this Tuesday. On the other hand...it doesn’t make a lot of sense calling into question the next moves for the stock market. Read on below to appreciate investment veteran, Steve Reitmeister’s, market outlook and top picks to outperform.

Read More Stories

More HCA Healthcare Inc. (HCA) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All HCA News