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Validea's pick of the week provides a detailed report on a company that scores well in the stock-screening service's model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor provides marketing and data services to Validea.ca and receives compensation. Try it.

Pennsylvania-based Universal Health Services Inc. owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers. UHS subsidiaries own and operate more than 235 acute care and behavioral health facilities and surgery centers in 37 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and the United Kingdom, and employ more than 70,000 people. UHS has a market cap of $11-billion (U.S.).

The company has grown EPS at a solid 16-per-cent clip over the long term (using an average of 3, 4, & 5 yr EPS growth rates), part of why it gets strong interest from Peter Lynch model. The Lynch model also likes its 1.0 P/E-to-growth ratio.

UHS has an 18-per-cent return on equity. It has a strong 15.8-per-cent return on retained earnings (those not paid out as dividends) over the past decade, which the Warren Buffett-based model likes.

It has increased EPS in each year of past half decade, helping it earn strong interest from the James O'Shaughnessy growth approach. The O'Shaughnessy model also likes its combination of a solid relative strength (66) and reasonable price/sales ratio (1.25).

The Martin Zweig model likes that EPS growth is accelerating - it jumped to 80 per cent last quarter.

UHS trades for a reasonable 16.7 times TTM EPS.

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