Long UHSUniversal Health Services, Inc. Class BBATS:UHSRealisto_FXGood morning, Get ready for longs for UHS after an identified bear trap below 145 level 1. Solid underlying revenue growth UHS continues to generate healthy same-facility growth across both its Acute Care and Behavioral Health businesses. The important point is that growth comes from a combination of: Higher patient volumes Higher revenue per admission Pricing/reimbursement increases Growth in Behavioral Health This gives UHS a relatively resilient organic growth profile without requiring large acquisitions. 2. Operating leverage could drive EPS faster than revenue This is probably the most interesting part of the thesis. If revenue grows around 5–7%, while costs grow more slowly, UHS can generate substantially higher EBITDA growth. The potential progression is: Revenue growth → margin expansion → EBITDA growth → higher FCF → share repurchases → higher EPS Therefore, the EPS growth rate can significantly exceed the underlying revenue growth rate. 3. 2026 weakness may prove temporary The company has experienced several headwinds, including: Higher labor costs Professional liability costs Regulatory/staffing requirements Underperformance during the ramp-up of certain facilities Issues affecting some Behavioral Health facilities The bullish interpretation is that these are largely operational or cyclical issues rather than deterioration of UHS's competitive position. If these pressures normalize, earnings could recover faster than the market currently expects. 4. Behavioral Health provides an additional growth engine UHS has a large Behavioral Health operation in addition to its acute-care hospitals. This is strategically interesting because demand for behavioral healthcare has structural drivers, while supply remains constrained in many markets. UHS therefore has two relatively distinct growth engines: Acute Care + Behavioral Health That diversification reduces dependence on traditional hospital admissions alone. 5. Medicaid reimbursement can provide significant upside UHS benefits from various supplemental Medicaid programs. If these programs remain broadly available, they can provide a meaningful contribution to EBITDA and cash flow. The important distinction is that I would not capitalize all of this as permanent earnings. Instead, I would treat Medicaid reimbursement as an upside variable with regulatory risk. 6. Share repurchases amplify the EPS story UHS has been actively repurchasing shares. This matters because if the company generates substantial FCF while the stock trades at a relatively modest earnings multiple, buybacks can create meaningful per-share earnings growth. For example: 5% earnings growth + 3% reduction in shares = potentially ~8% EPS growth before considering margin expansion. That is one reason I would focus on FCF/share and EPS/share rather than simply revenue growth when analysing UHS. The core bull thesis UHS is a high-quality healthcare operator temporarily dealing with cost and operational headwinds. If volumes remain healthy, reimbursement continues to improve, margins normalize and the company continues buying back stock, EPS can compound materially faster than revenue. If the market subsequently assigns UHS a higher multiple, investors get both earnings growth and multiple expansion. This position is part of a diversified portfolio based in EPS growth and technical, with public track record. I read below your comments