Tenet Healthcare (THC) Increases Despite Market Slip: Here's What You Need to Know

The latest trading session saw Tenet Healthcare (THC) ending at $100.38, denoting a +0.42% adjustment from its last day's close. This change outpaced the S&P 500's 0.19% loss on the day. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw a decrease of 0.54%.

Prior to today's trading, shares of the hospital operator had gained 13.5% over the past month. This has outpaced the Medical sector's gain of 2.91% and the S&P 500's gain of 3.18% in that time.

The investment community will be paying close attention to the earnings performance of Tenet Healthcare in its upcoming release. The company is expected to report EPS of $1.41, down 0.7% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $5.12 billion, indicating a 1.87% upward movement from the same quarter last year.

THC's full-year Zacks Consensus Estimates are calling for earnings of $5.93 per share and revenue of $20.14 billion. These results would represent year-over-year changes of -15.04% and -2%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Tenet Healthcare. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.91% lower. As of now, Tenet Healthcare holds a Zacks Rank of #3 (Hold).

Looking at valuation, Tenet Healthcare is presently trading at a Forward P/E ratio of 16.85. This signifies a premium in comparison to the average Forward P/E of 16.32 for its industry.

We can additionally observe that THC currently boasts a PEG ratio of 3.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Hospital industry currently had an average PEG ratio of 1.97 as of yesterday's close.

The Medical - Hospital industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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