126.22 -5.2 (-4.12%) Buy

Looking to invest in UHS? Look for alternatives because it underperformed broader market

13 min read

UNIVERSAL HEALTH SERVICES INC has destroyed investor wealth on Friday. It fell by -4.12% to close at 126.22. It is currently trading +14% above it's 52 week low of 110.15 and is down only -8% from it's 52 week high.

[Themes containing UHS]

UHS showed a flat trend over the last 3 months. During this period UHS delivered +0.67% and saw a maximum drawdown of -10.16%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in UHS till volatility reduces and a clear trend emerges.


UHS has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 24 Jun, 2016 to 15 Nov, 2017. Over the last 2 years 11 months and 3 days, UHS underperformed the SP500 index on 47% days. Which indicates that on days UHS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months UHS was mostly profitable and delivered on average +0.02% per day. It's best return during this period (of +3.9%) was on Friday, 16 Nov, 2018. While it's worst loss in the same period (of -4.89%) was on Friday, 26 Oct, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 21 Nov, 2018 and went on till 30 Nov, 2018. This bullish trend returned +5.93% to investors.

During the last year UHS had 6 profitable months and 6 loss making months. UHS returned profits in fewer months than SP500 index. UHS significantly outperformed SP500 index in Nov 2018, when it returned +13.52% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. UHS had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both UHS and SP500 index significantly outperform during months when quarterly/annual results are announced.

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UHS is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in UHS's volatility from 17 Sep, 2018 to 26 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that UHS has significant positive skewness in it's return distribution. This indicates that investors can expect UHS to recover from drawdowns quickly. Which makes UHS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than UHS. Therefore, SP500 must receive a lower allocation than UHS in your portfolio. UHS usually has shorter drawdown period than the SP500 index.

Based on your interest in UHS you may find it interesting to know that NVCN, OPNT and EPIX are all extremely risky investment candidates that must be evaluated carefully. Investors with low risk profile are better off avoiding them till their performance becomes more consistent.

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