Track market-moving stories before they get noisy

The Zacks Medical-Hospital industry is undergoing a structural transformation as patients and payers increasingly shift toward lower-cost care settings outside traditional hospitals. As a result, the fastest growth is coming from ambulatory surgery centers, home health and post-acute care providers. Meanwhile, hospitals continue to contend with elevated patient utilization, persistent labor and supply cost inflation, and reimbursement and regulatory uncertainty. To protect margins, providers are accelerating investments in AI, revenue cycle management and digital technologies, while streamlining operations and expanding outpatient care networks.
Strategic mergers and acquisitions also remain an important growth lever to expand scale, improve efficiency and strengthen market presence. Companies like Tenet Healthcare Corporation (THC - Free Report) , Universal Health Services, Inc. (UHS - Free Report) , Acadia Healthcare Company, Inc. (ACHC - Free Report) and Community Health Systems, Inc. (CYH - Free Report) are streamlining operations, strengthening cost discipline and investing in higher-growth service lines.

Industry Overview The Zacks Medical-Hospital industry comprises for-profit hospital companies that provide healthcare through different types of hospitals, including acute care, outpatient, rehabilitation and psychiatric. These entities are engaged in internal medicine, general surgery, cardiology, oncology, neurosurgery, orthopedics and obstetrics, telehealth, mental health and diagnostic and emergency services. Revenues of these companies depend on inpatient occupancy, medical and ancillary services ordered by physicians and provided to patients, and the volume of ambulatory surgery centers’ (ASC) procedures. These companies receive payments for patient services from the government under the Medicare program, Medicaid, or similar programs, managed care plans (including plans offered through the American Health Benefit Exchanges), private insurers and directly from patients.

4 Key Trends Shaping the Hospital Industry Demand Grows as Care Moves Beyond Hospitals: Demand for healthcare continues to rise, supported by an aging U.S. population, increasing chronic disease prevalence and higher use of elective procedures. CMS projects national health spending to climb steadily and reach around $9 trillion by 2034, making up 20.6% of the economy. Meanwhile, care is shifting away from traditional inpatient hospitals toward ambulatory surgery centers, outpatient clinics, home health and virtual care. Lower-cost settings are becoming more attractive for patients and payers, prompting hospital systems to expand outpatient networks, strengthen physician partnerships and invest in home-based services to meet changing demand while improving asset utilization.

Margin Pressure Keeps Efficiency in Focus: Hospitals continue to face elevated labor, supply and pharmaceutical costs, even as contract staffing expenses ease from pandemic highs. Reimbursement growth has generally lagged cost inflation, keeping pressure on operating margins. Additionally, emerging cyber risks are pushing up insurance premiums and compliance costs, adding further pressure across the system. In response, providers are tightening cost controls, improving workforce productivity and automating administrative tasks. Many are also using data analytics to optimize staffing, purchasing and patient flow.

Technology Becomes a Competitive Advantage: Artificial intelligence is moving beyond pilot programs and becoming part of everyday hospital operations. It is increasingly improving revenue cycle management, prior authorization workflows and clinical documentation, helping providers accelerate collections and reduce administrative workload. Digital tools are also strengthening patient engagement through online scheduling, remote monitoring and virtual follow-up care. Telehealth remains an important part of care delivery, particularly for rural communities and patients with chronic conditions, allowing hospitals to extend services beyond their physical campuses while improving continuity of care.

Strategic Expansion Strengthens Market Position: Hospitals continue to pursue mergers, acquisitions and strategic partnerships to improve scale, expand specialty services and strengthen financial stability. While regulatory scrutiny has slowed some large hospital mergers, providers remain active in acquiring physician practices, outpatient facilities and complementary care businesses. These investments broaden referral networks, support the shift toward lower-cost care settings and create opportunities for greater operating efficiency. Larger health systems are also investing in digital infrastructure and outpatient capacity, positioning themselves to compete more effectively as healthcare delivery continues to evolve.

Zacks Industry Rank Indicates Positive Outlook The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, signals promising near-term prospects. The Zacks Medical-Hospital industry, which is housed within the broader Zacks Medical sector, currently carries a Zacks Industry Rank #107, which places it in the top 43% of nearly 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

Looking at the aggregate earnings estimate revisions, it appears that analysts are becoming optimistic about this group’s earnings growth potential. As a matter of fact, the industry’s earnings estimates for 2026 have gone up by 5.7% over the past year.

Considering the encouraging dynamics of the industry, we will present a few stocks that should be on your watchlist. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.

Industry Lags Sector and S&P 500 The Zacks Medical-Hospital industry has fared worse than the broader Zacks Medical sector and the Zacks S&P 500 Composite over the past year, pressured by concerns over reimbursement, healthcare policy uncertainty and a shift in investor preference toward higher-growth technology and AI stocks.

The industry has declined 6.9% over the past year compared with a 6.9% gain for the broader sector and a 22.5% advance for the S&P 500.

One-Year Price PerformanceIndustry's Current Valuation Since hospital operators are capital-intensive businesses that require significant investment in facilities and equipment, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio. On the basis of the trailing 12-month EV/EBITDA ratio, the industry trades at 6.60X compared with the S&P 500’s 18.23X and the sector’s 9.94X.

Over the past five years, the industry has traded as high as 10.66X and as low as 6.34X, with a median of 8.33X, as the charts below show.

EV/EBITDA Ratio (Past 5 Years)

4 Hospital Stocks to Watch Tenet Healthcare: Based in Dallas, TX, the company operates acute care hospitals and is one of the nation's largest ambulatory care platforms. It continues to expand its Ambulatory Care segment through strategic acquisitions to capitalize on growing demand for outpatient procedures. The company is also benefiting from solid same-facility revenue growth, higher adjusted admissions and sustained momentum across its key service lines.

The Zacks Consensus Estimate for Tenet Healthcare’s 2026 bottom line is pegged at $17.61 per share, up 5% year over year. The same for 2027 indicates further growth to $17.63 per share. It beat earnings estimates in each of the past four quarters, with an average surprise of 20.6%. The consensus mark for 2026 and 2027 revenues indicates 3.3% and 1.9% year-over-year growth, respectively. Shares of the company have gained 1.6% over the past month. It currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price & Consensus: THC

Universal Health Services: Headquartered in King of Prussia, PA, the company operates acute care hospitals, outpatient centers and one of the nation's largest behavioral health networks. Its services span internal medicine, autism care, addiction treatment and military-related healthcare. Growth is being driven by tuck-in acquisitions, rising patient days and admissions, facility expansion and partnerships that strengthen its behavioral health presence. UHS also maintains a shareholder-friendly capital allocation strategy, with regular buybacks and dividends, and had $1.298 billion remaining under its share repurchase authorization as of March 31, 2026.

The Zacks Consensus Estimate for Universal Health’s 2026 and 2027 bottom line is pegged at $23.47 and $25.40 per share, up 8% and 8.2% year over year, respectively. It beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 9.5%. The consensus mark for 2026 and 2027 revenues indicates 6.8% and 5.1% year-over-year increases, respectively. While Universal Health shares have declined 6.4% over the past month, improving operations are expected to support a future rebound. It also currently has a Zacks Rank #3.

Price & Consensus: UHS

Acadia Healthcare: Based in Franklin, TN, it operates Acute Inpatient Psychiatric Facilities and Comprehensive Treatment Centers, which remain its core growth engines. Rising patient days, revenues per patient day, higher admissions and strong demand for mental health and substance use treatment continue to support steady long-term growth. ACHC’s solid cash generation ability and meaningful real estate assets provide financial flexibility and downside support. Following operational challenges over the past year, management's strategic initiatives are expected to improve execution and support earnings recovery.

The Zacks Consensus Estimate for Acadia Healthcare’s 2026 bottom line is pegged at $1.50 per share. The same for 2027 indicates a 14.8% year-over-year jump to $1.72 per share. It beat earnings estimates in each of the past four quarters, with an average surprise of 47.5%. The consensus mark for 2026 and 2027 revenues indicates 2.6% and 5.7% year-over-year growth, respectively. ACHC shares have gained 8.9% over the past month. It currently has a Zacks Rank #3.

Price & Consensus: ACHC

Community Health Systems: Headquartered in Franklin, TN, it operates a network of acute care hospitals and outpatient centers. The company is benefiting from lower expenses, higher-acuity procedures, improving commercial payer mixand resilient same-store revenues. Management is also focusing on operational efficiency and selective partnerships to support growth. In parallel, CYH continues to divest non-core assets to sharpen its portfolio, reduce debt burden and improve long-term profitability, even though these moves could pressure results in the near term.

The Zacks Consensus Estimate for Community Health Systems’ 2026 bottom line is pegged at a loss of 58 cents per share. The same for 2027 implies a 71.3% year-over-year improvement. The consensus mark for 2026 and 2027 revenues is pegged at $11.56 billion and $11.67 billion, respectively. Shares of Community Health Systems have jumped 15.9% in the past month. It currently has a Zacks Rank #3.

Price & Consensus: CYH

ACHC rides on strong demand and expansion gains, but premium valuation, rising costs, and weak efficiency raise caution for investors weighing next moves.

FRANKLIN, Tenn.--(BUSINESS WIRE)--Acadia Healthcare Company, Inc. (NASDAQ: ACHC) today announced that it will release its first quarter 2026 results on Wednesday, April 29, 2026, after the close of the market. Acadia will also conduct a conference call with institutional investors and analysts on Thursday, April 30, 2026 at 9:00 a.m. ET. A live broadcast of the conference call will be available at www.acadiahealthcare.com in the “Investors” section of the website. The webcast of the conference.

Hedge fund manager David Einhorn said he is focusing on capital protection as markets rally on geopolitical optimism, warning that investors may be underestimating potential downside risks.

"It probably won't surprise anyone that we are again putting capital preservation at the top of our priorities," Einhorn said in his latest investor letter dated Monday and obtained by CNBC. "With so little downside priced in, we are willing to risk missing out on a possible recovery to position ourselves to play more offense, should one of the downside scenarios materialize."

U.S. stocks have rebounded violently with the S&P 500 entirely erasing the losses suffered since the Iran war began. The market is building on the recent gains this week even after U.S.-Iran negotiations over the weekend broke down, as investors remained optimistic that a deal between the two countries was still possible.

S&P 500 year to date

Greenlight's funds returned 6.5% in the first quarter, outperforming the S&P 500's 4.4% decline. Still, Einhorn said the firm has kept relatively low gross and net exposure, reflecting caution about valuations and the broader macro backdrop.

"Even the most cautious are investing with a Sammy Hagar inspired mentality: one foot on the brake and one on the gas," he said in the letter. "Nobody wants to miss the V- or even the checkmark-shaped recovery."

As the conflict began, Greenlight was already running with relatively low exposure, citing what it viewed as stretched valuations. Einhorn said Greenlight has made few adjustments, trading around index hedges and adding a long position in October oil futures. That bet has risen only modestly, as markets largely expect any supply disruption to be temporary.

Performance in the quarter was driven by gains in gold, Acadia Healthcare, DHT Holdings and Core Natural Resources, according to the letter. Greenlight also initiated a medium-sized position in Versant Media Group and smaller stakes in Crocs and SLM Corp.

Disclosure: Versant Media is the parent company of CNBC.

FRANKLIN, Tenn.--(BUSINESS WIRE)--Acadia Healthcare Company, Inc. (“Acadia” or the “Company”) (NASDAQ: ACHC) today announced the appointment of David Duckworth, former Chief Financial Officer of Acadia, as Interim Chief Financial Officer, effective May 1, 2026. Duckworth succeeds Todd Young, who is departing from the Company to pursue a CFO role at a private equity-backed animal health company. Young will remain with the Company through April 30, 2026, and will participate in the Company's firs.

FRANKLIN, Tenn.--(BUSINESS WIRE)--Acadia Healthcare Company, Inc. (“Acadia” or the “Company”) (NASDAQ: ACHC) today announced financial results for the first quarter ended March 31, 2026. First Quarter 2026 Results Revenue totaled $828.8 million, a 7.6% increase compared with the first quarter of 2025 Same-facility revenue increased 7.3% compared with the first quarter of 2025, including an increase in revenue per patient day of 5.6% and an increase in patient days of 1.6% Net income attributabl.

Acadia Healthcare Company, Inc. is downgraded to Sell due to persistent structural issues and a sharp valuation increase. Despite CEO change and capex cuts, ACHC faces a 200+ bps margin disadvantage from elevated insurance costs and rising claim frequency. ACHC's reliance on Medicaid (60.7% of revenue) is at risk from OBBBA, with reimbursement rates set to decline after 2028.

Key Takeaways Acadia Healthcare's Q1 EPS of 37 cents beat estimates as revenues rose 7.6% YoY to $828.8M.ACHC's growth was driven by higher patient days, admissions and a 14% Acute Inpatient revenue gain.ACHC raised its 2026 EBITDA outlook to $580-$615M and lifted EPS guidance despite rising expenses. Acadia Healthcare Company, Inc. (ACHC - Free Report) reported adjusted first-quarter earnings of 37 cents per share, which beat the Zacks Consensus Estimate of 28 cents. However, the bottom line declined 7.5% year over year.

Total revenues increased 7.6% year over year to $828.8 million. The top line beat the consensus mark of $824 million.

The better-than-expected quarterly results were driven by increased patient days and revenues per patient day, and higher admissions, which were partially offset by lower average length of stay and higher expenses.

ACHC’s Q1 OperationsACHC’s top line benefited most from its Acute Inpatient Psychiatric Facilities business, where revenues increased 14% year over year to $470.7 million and beat the Zacks Consensus Estimate by 6.4%. The metric benefited from higher volumes, aided by expanded capacity from both new construction and additions at existing facilities.

Specialty Treatment Facilities’ revenues declined 6.5% from the prior-year period to $128.1 million. Comprehensive Treatment Facilities’ revenues rose 2.5% year over year to $140.4 million, while Residential Treatment Facilities’ revenues increased 6.3% to $89.6 million.

Same-facility revenues of $813.4 million rose 7.3% year over year and beat the Zacks Consensus Estimate by 2%. The year-over-year improvement was driven by a 1.6% increase in patient days. Admissions grew 6.5% year over year. The average length of stay declined 4.6% year over year and missed the consensus estimate by 5.5%. Revenue per patient day increased 5.6% year over year.

In the overall facility, patient days improved 1.5% year over year, while admissions grew 7.8%. Revenue per patient day increased 5.9% year over year. The average length of stay declined 5.8% year over year.

Total expenses of $817.8 million rose from $757 million in the prior-year period due to higher salaries, wages and benefits, other operating expenses, supply costs and professional fees.

Total adjusted EBITDA rose 7.5% year over year to $144.2 million.

During the quarter, the company added 82 newly licensed beds, including 42 beds at existing facilities and 40 beds from newly constructed facilities, including a joint venture with Tufts Medicine.

Financial Update (as of March 31, 2026)Acadia Healthcare exited the first quarter with cash and cash equivalents of $158.5 million, which increased from $133.2 million at the 2025-end level. It had a leftover capacity of $564.8 million under its $1 billion revolving credit facility at the first-quarter end.

Total assets of $5.5 billion increased 0.3% from the figure at the end of 2025.

Long-term debt amounted to $2.5 billion, which rose from $0.9 billion as of Dec. 31, 2025. The current portion of long-term debt was $32.5 million.

Total equity of $2 billion increased from the 2025-end level of $1.9 billion.

Net cash provided by operations totaled $61.5 million in the first quarter of 2026 compared with $11.5 million in the prior-year comparable period.

Acadia Healthcare’s Share Repurchase UpdateThe company did not buy back shares in the first quarter of 2026.

Q2 Guidance by ACHCFor the second quarter of 2026, revenues are projected to be between $835 million and $850 million. Adjusted earnings per share (EPS) are predicted to be between 30 cents and 40 cents.

Adjusted EBITDA is estimated to be in the range of $142-$152 million.

Acadia Healthcare’s Revised 2026 OutlookRevenues are still projected to be in the range of $3.37 to $3.45 billion. Adjusted EBITDA is now estimated to be in the range of $580 to $615 million, up from the previous guidance range of $575 to $610 million. Adjusted EPS are now predicted to be between $1.35 and $1.60, up from the previous guidance range of $1.30 and $1.55.

Operating cash flows are now forecasted in the range of $285 to $325 million. Capital expenditures are expected to be in the range of $255-$280 million.

Management earlier estimated bed additions between 400 and 600 in 2026.

ACHC’s Zacks RankACHC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did Peers Perform?Several companies in the Medical space, including Molina Healthcare Inc. (MOH - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Elevance Health, Inc. (ELV - Free Report) , have already reported their financial results for the March quarter of 2026. Here’s how they had performed:

Molina Healthcare reported first-quarter 2026 adjusted earnings per share of $2.35, which beat the Zacks Consensus Estimate of $1.57. The bottom line declined 61.3% from the year-ago period's level. Revenues amounted to $10.8 billion, which decreased 3.1% year over year. The first-quarter performance was supported by lower medical care costs, partially offset by declining premiums, membership and investment income.

UnitedHealth reported first-quarter 2026 EPS of $7.23, which beat the Zacks Consensus Estimate of $6.46. The bottom line rose 0.4% year over year. Revenues rose 2% year over year to $111.7 billion. The quarterly earnings were aided by growth in commercial fee-based membership and the strength witnessed in Optum Rx. However, weakness in UnitedHealth’s Optum Health and declining risk-based membership partially offset the positives.

Elevance Health reported first-quarter 2026 adjusted earnings per share of $12.58, which surpassed the Zacks Consensus Estimate by 17.8%. The bottom line rose 5.1% year over year. Operating revenues advanced 1.5% year over year to $49.5 billion. The quarterly results benefited on the back of strong growth in premiums. Segment-wise, the Carelon division posted a robust revenue surge, aided by scaling risk-based services, while Health Benefits saw increased premium yields. However, Elevance Health’s upside was partly offset by a decline in overall medical membership and an elevated expense level.

On May 15, 2026, 13D Management disclosed a new position in Acadia Healthcare (ACHC +4.10%), acquiring 294,000 shares in a trade estimated at $5.32 million based on quarterly average pricing.

What happenedAccording to a filing with the Securities and Exchange Commission dated May 15, 2026, 13D Management initiated a new position in Acadia Healthcare (ACHC +4.10%) by acquiring 294,000 shares. The estimated value of the trade, calculated using the average closing price for the first quarter of 2026, was $5.32 million. The quarter-end value of the holding was $6.88 million, reflecting the position’s valuation at the end of the period.

What else to knowThis was a new position for the fund, with Acadia Healthcare representing 10.7% of 13F reportable assets after the trade.Top five holdings after the filing:NYSE:TWLO: $7.64 million (11.85% of AUM)NASDAQ:VSAT: $7.55 million (11.7% of AUM)NASDAQ:ACHC: $6.88 million (10.7% of AUM)NYSE:PSO: $6.02 million (9.3% of AUM)NYSE:ALV: $5.87 million (9.1% of AUM)As of May 14, 2026, shares of Acadia Healthcare were priced at $26.80, roughly flat over the past year and well underperforming the S&P 500, which is instead up about 25%.Company overviewMetricValueRevenue (TTM)$3.37 billionNet Income (TTM)($1.10 billion)Price (as of market close May 14, 2026)$26.80Company snapshotAcadia Healthcare provides behavioral healthcare services, including inpatient psychiatric care, specialty treatment, residential treatment centers, and outpatient clinics across the United States and Puerto Rico.The firm operates a network-based model, generating revenue primarily from patient services at its owned and operated healthcare facilities.It serves individuals seeking mental health and addiction treatment, with primary customers including patients, families, and referring healthcare professionals.Acadia Healthcare is a leading provider of behavioral healthcare services, operating hundreds of facilities and thousands of beds across the United States and Puerto Rico. The company's scale and diversified service offerings position it as a key player in the mental health and addiction treatment sector. Acadia Healthcare's extensive facility network and focus on specialized care support its competitive advantage in addressing growing behavioral health needs.

What this transaction means for investorsAcadia Healthcare shares have badly lagged the broader market over the past year, but they surged over 60% last quarter alone, and 13D Management made the company one of its largest disclosed positions immediately after establishing the stake.

The timing is notable because Acadia’s underlying business trends have improved. First-quarter revenue climbed 7.6% to $828.8 million, while same-facility revenue rose 7.3%, helped by higher patient volumes and stronger pricing. Adjusted EBITDA increased to $144.2 million from $134.2 million a year earlier, prompting management to raise its full-year adjusted EBITDA and earnings guidance. CEO Debbie Osteen thanked disciplined execution, strong patient volumes, and continued operating efficiencies for the strong performance.

The company also continues expanding capacity. Acadia added 82 newly licensed beds during the quarter and now operates roughly 275 facilities with approximately 12,400 beds across 40 states and Puerto Rico. If management can keep this up, the stock’s recent underperformance could start to look more like an opportunity than a warning sign.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Twilio. The Motley Fool recommends Pearson Plc. The Motley Fool has a disclosure policy.

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Mid-Day Stocks: Stocks are trading lower on Wednesday, as oil and yields move higher. Once again, it was “Welcome back, my friends to the show that never ends.” On cue, the never-say-die stock market shook off early worries and all the major indices closed higher on Tuesday. Like the proverbial broken record, the S&P 500 printed yet another all-time high, closing the session at 7,609, up another 0.13%, and for the first time closing over 7,600. In contrast, the Nasdaq barely closed higher, up 0.03% at 27,093. The Dow Jones Industrials, which started the day lower, then rallied to close at 51,307, up 0.45%, and the small-cap-heavy Russell 2000 joined the party, closing at 2,931, up 0.90%.

Treasury Bonds: Yields were lower across the entire Treasury curve yesterday, as investors returned to U.S. sovereign debt. The rally was primarily fueled by investors’ heightened focus on U.S.-Iran peace negotiations and a partial ceasefire in the Middle East. These developments meaningfully eased concerns about global inflationary pressures and the risk of sharp oil-price spikes. Yet, even as the broader equity market continued its advance, lingering geopolitical uncertainties surrounding the U.S.-Iran deadlock prompted a defensive shift in capital toward the relative safety of U.S. government debt. The 30-year-long bond closed the day at 4.97%, while the 10-year note closed at 4.45%. 

Oil and Gas: Prices were higher across the energy complex as the song remains the same, amid uncertainty over U.S.-Iran peace negotiations and stalled efforts to reopen the Strait of Hormuz. Prices rallied after reports that Iran was reviewing the latest U.S. peace proposal, but as usual with Iran, progress remained stalled, and Hezbollah rejected a partial ceasefire with Israel. Brent Crude closed at $95.79, up 0.85%, while the last trade for West Texas Intermediate. came in at $93.29,  up 1.33%. Natural gas closed essentially flat at $3.16. 

Gold: After a solid day for the debt and equity markets, precious metals finished the session modestly higher. Again, across almost every asset class, the shifting narrative on the war with Iran swings the major indices one way or the other. Gold closed up a modest 0.07% at 4,478, while Silver was last seen at $75, up 0.35%.

Crypto: Cryptocurrency markets suffered a sharp selloff on Tuesday, as Bitcoin plunged below $67,000,  its lowest level since April. The steep drop triggered more than $1.2 billion in long liquidations across the market, pulling Ethereum, major altcoins, and crypto-related stocks lower. At 1 PM EDT, Bitcoin is trading at $66,934, down 4.9% in the last 24 hours, while Ethereum was quoted at $1,823.

24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. 

Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Wednesday, June 3, 2026. 

Upgrades: Acadia Healthcare Company (NASDAQ: ACHC | ACHC Price Prediction) was upgraded to Buy from Hold at Jefferies, which lifted the price target to $30 from $24.50. SSR Mining (NASDAQ: SSRM) was upgraded to Outperform from Sector Perform at RBC Capital, which trimmed the target price for the stock to $40 from $45. Yum! Brands (NYSE: YUM) was upgraded to Overweight from Equal Weight at Morgan Stanley, with the target price raised to $185 from $180. Downgrades: Chipotle Mexican Grill (NYSE: CMG) was cut to Equal Weight from Overweight at Morgan Stanley, which lowered the price target for the shares to $37 from $49. Conagra Brands (NYSE: CAG) was cut to Underperform from Market Perform at Bernstein, which trimmed the target price to $12 from $16. Dollar General (NYSE: DG) was downgraded to Hold from Buy at Freedom Broker, which raised the price target for the small-town retail giant to $140 from $95. MGM Resorts International (NYSE: MGM) was downgraded to Hold from Buy at CBRE, with a $50 target price. Initiations: Boyd Gaming (NYSE: BYD) was initiated with a Buy rating at Texas Capital, which has a $106 target price for the shares. BridgeBio Pharma (NASDAQ: BBIO) was started with a Buy rating at Canaccord with a $104 price target. Omnicom Group (NYSE: OMC) was initiated with a Buy rating at Goldman Sachs, with a $146 target price objective. 
Viking Holdings (NYSE: VIK) was started with an Outperform rating at Bernstein, with a $120 target price.