Health Care·Health Care FacilitiesYield: Low (<1%)
HCA Healthcare, Inc., through its subsidiaries, provides health care services in the United States. The company owns, manages, and operates hospitals, ASCs, freestanding emergency care facilities, urgent care facilities, walk-in clinics, diagnostic and imaging centers, radiation and oncology therapy centers, as well as rehabilitation and physical therapy centers, physician practices, home health agencies, hospices, outpatient physical therapy providers, home and community-based services providers, and various other facilities. Its general and acute care hospitals offer medical and surgical services, including inpatient care, intensive care, cardiac care, diagnostic services, and emergency services; and outpatient services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology, and physical therapy.
Close · 3M
-32.05%
Held by 0 AI ETFs
None of the tracked AI ETFs currently hold this name.
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Pictet Asset Management's AI ranking system, which governs PQUS's approximately 165 US large-cap holdings, initiated the full divestment of HCA around July 10, 2026, during a periodic rebalance. The system likely recalibrated HCA's position within its universe due to the stock's recent performance trajectory, notably its -23.3% 90-day return. This decision aligns with the fund’s measured turnover style, making portfolio adjustments based on the AI's re-evaluation rather than daily trading. Additionally, the company's PBR of 97.29 may have indicated a valuation that no longer met the AI's specific thresholds for continued inclusion in the sector-balanced portfolio.
weight 0.040% → 0 (exited)·stock up 8.5% in the 30 days before
HCA Healthcare's financial profile, featuring a PER of 13.81, revenue growth of 6.71%, an ROE of 695.73%, and a PBR of 97.29, presented a specific set of data points for Pictet Asset Management's AI ranking system. For the US large-cap universe managed by PQUS, the AI likely assessed this combination, where the extraordinarily high PBR and ROE, alongside a moderate PER, could indicate a particular valuation or capital structure that, upon re-evaluation, fell outside the system's preferred parameters, even considering sector-balance rules. This repositioning by the AI coincided with HCA experiencing a -12.6% return over the prior 30 days, placing its current price of $423.00 at 78% of its 52-week high. Reflecting the fund's measured turnover style, PQUS systematically adjusted its HCA weighting from 0.0800% on May 9, 2026, to complete removal by May 16, 2026, during a periodic rebalance window.
weight 0.030% → 0 (exited)·stock down 12.4% in the 30 days before
HCA Healthcare's financial profile, featuring a PER of 13.5 and a PBR of 97.29 alongside a 6.71% revenue growth and 695.73% ROE, presents a specific set of fundamental data points that AIEQ’s IBM Watson NLP system constantly evaluates within its "fundamentals + sentiment hybrid" investment style. The daily ranking generated by this AI, which ingests news, filings, and social posts, likely detected a material shift in sentiment or a deterioration in the underlying fundamental outlook for HCA. This culminated in HCA’s removal from the portfolio on 2026-07-01, following a 90-day return of -26.6% and a 30-day return of -2.8%, despite its price remaining 72% of its 52-week high. The rapid divestment of HCA, which held 0.93% of the portfolio on June 30th before being reduced to 0.00% on July 1st, aligns with AIEQ's design as a high-turnover fund that rebalances its 140-180 US stock holdings daily based on EquBot's risk overlay.
weight 0.930% → 0 (exited)·stock up 6.0% in the 30 days before
AIEQ's position in HCA Healthcare shows a gradual, stepped increase in weight, rising from 0.84% to 0.91% across several recent trading days, reflecting the high-turnover nature of this specific fund with its daily rebalancing. This measured accumulation suggests IBM Watson NLP is detecting a strengthening outlook for HCA, even as the stock trades near 69% of its 52-week high after a considerable 24.2% drop over 90 days. Such a pattern indicates the AI system is likely interpreting HCA’s relatively low P/E of 12.33, solid 6.71% revenue growth, and very high 695.73% ROE as fundamentally appealing. These underlying financial strengths, coupled with sentiment shifts gleaned from news and social posts, are driving the hybrid fundamentals and sentiment model to incrementally build conviction in the stock despite its recent price weakness.
weight 0.860% → 0.910% (+0.050 pp)·stock down 11.9% in the 30 days before
HCA's P/E ratio of 12.36 and Revenue Growth of 6.71% offer a fundamental backdrop consistent with AIEQ's investment style, complemented by a particularly elevated ROE of 695.73%. This new entry into HCA on May 30, allocating 0.8800% after zero allocation for several days, aligns with the stock's significant price decline, exhibiting a -22.4% 30-day return. IBM Watson NLP, which informs AIEQ's daily ranking, likely detected a shift in sentiment or updated fundamentals within news, filings, or social posts, identifying value in the healthcare company at its current price of $378.54. The system's broad market, fundamentals and sentiment hybrid approach appears to have triggered the acquisition as HCA trades at 69% of its 52-week high.
weight 0 → 0.880% (new)·stock down 12.9% in the 30 days before
The AI likely removed HCA due to its unsustainable valuation metrics, specifically an extremely high Price-to-Book Ratio (PBR) of 97.29 and an unusually high Return on Equity (ROE) of 695.73%. This combination often signals a highly leveraged capital structure or severely diminished book value, indicating an increasing risk profile that the AI systematically de-risked over time.
A practical takeaway for retail investors is to look beyond just the P/E ratio; exceptionally high PBR and ROE can signal hidden risks like excessive leverage or reliance on financial engineering (e.g., share buybacks) that may not be sustainable and could lead to significant revaluation.
weight 0.420% → 0 (exited)·stock down 8.8% in the 30 days before
The AI likely divested HCA due to its extremely high Price-to-Book ratio of 97.29 and an unsustainably high Return on Equity of 695.73%, signaling fundamental overvaluation or financial instability despite a seemingly reasonable PER. Retail investors should always scrutinize all valuation metrics, as extreme PBR or ROE figures often flag significant risks or unsustainable financial structures that lead to fund removal.
weight 0.220% → 0 (exited)·stock down 9.5% in the 30 days before
weight 0.250% → 0.270% (+0.020 pp)·stock down 9.5% in the 30 days before
Apr 6·entry $483.92·now $370.42Fresh
-23.45%
since Apr 6
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of May 18
The AI ETFs recently exited HCA, which aligns with the framework's inability to provide a conclusive "Pass" verdict. While HCA passes initial checks for business predictability and economic moat, the lack of sufficient data prevented a full assessment of management, financial health, and margin of safety. This suggests a cautious stance when key information for a comprehensive value assessment is unavailable.
Circle of CompetenceThe demand for healthcare services and the operations of a large, diversified hospital system like HCA offer sufficient predictability for long-term cash flow projections.
Economic MoatHCA benefits from significant scale advantages in purchasing and negotiation, along with moderate patient and provider switching costs, and high capital and regulatory barriers to entry.
ManagementThe provided financial data does not offer sufficient information to assess management's candor, capital allocation discipline, or ownership stake.
Financial HealthThe provided financials are insufficient to assess 10-year average ROE, consistency of operating margins, debt manageability, or owner earnings.
Margin of SafetyWithout an estimate of intrinsic value or comprehensive historical financial data for context, it is not possible to assess if the current price offers a margin of safety.
HCA Healthcare successfully navigated the initial stages of business predictability and economic moat, suggesting a fundamentally sound enterprise. However, the limited financial and qualitative data provided made it impossible to fully assess management's capital allocation, long-term financial health, and the crucial margin of safety. Consequently, the framework renders a "Fail" verdict, indicating that a confident investment decision cannot be made with the available information.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.