Tenet Healthcare (THC) Stock Sinks As Market Gains: What You Should Know

Tenet Healthcare (THC) closed at $132.24 in the latest trading session, marking a -1.08% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.15% for the day. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.17%.

The hospital operator's stock has climbed by 9.26% in the past month, exceeding the Medical sector's gain of 2.96% and the S&P 500's gain of 3.2%.

Market participants will be closely following the financial results of Tenet Healthcare in its upcoming release. In that report, analysts expect Tenet Healthcare to post earnings of $1.83 per share. This would mark year-over-year growth of 27.08%. Meanwhile, our latest consensus estimate is calling for revenue of $4.98 billion, down 2.03% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.76 per share and a revenue of $20.34 billion, signifying shifts of +25.5% and -1.04%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Tenet Healthcare. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.27% higher. Currently, Tenet Healthcare is carrying a Zacks Rank of #1 (Strong Buy).

In the context of valuation, Tenet Healthcare is at present trading with a Forward P/E ratio of 15.27. Its industry sports an average Forward P/E of 15.61, so one might conclude that Tenet Healthcare is trading at a discount comparatively.

Investors should also note that THC has a PEG ratio of 1.37 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Medical - Hospital industry stood at 1.46 at the close of the market yesterday.

The Medical - Hospital industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 29, finds itself in the top 12% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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