Top Performer for Fri: Tenet Healthcare (THC)

It hasn't been that long since we last featured Tenet Healthcare Corporation (THC - Snapshot Report) as a Zacks #1 Rank Top Performer. (On Jul 28, the company made the list after offering a rather positive second-quarter preview.)

With a gain of more than 8% today, THC is once again a Top Performer after a major brokerage firm upgraded the stock to "Outperform" from "Neutral". Volume is at 13.8 million shares; well above the daily average of 7.8 million.

There are only 2 companies from the Medical-Hospitals industry on today's Zacks #1 Rank List, which includes 229 stocks. Besides THC, the other company is Universal Health Services, Inc. (UHS - Analyst Report).

Earnings Estimates on the Rise

There are 16 covering analysts for both this year and next, and they've been quite busy of late. In addition to the recent upgrade, THC has gotten credit for the aforementioned second-quarter preview from Jul 28, as well as its actual second-quarter report from Aug 4.

The past month has seen 9 of those 16 analysts revise higher for this year, sending the Zacks Consensus Estimate to a profit of 3 cents per share from a loss of 5 cents. In addition, the past 7 days saw 2 upward revisions, sparking a 1-cent, or 50%, gain from 2 cents.

The Zacks Consensus Estimate for next year is at 6 cents, or 100% better than the expectation for this year. In the past month, this guidance has advanced from breakeven thanks to 13 analysts. A week ago, analysts were expecting 5 cents, marking a gain of 1-cent, or 20%.

Second Quarter Report

Earlier this month, THC announced second-quarter results that were in-line with its preview from a week earlier.

More specifically, the company confirmed its outlook for EBITDA between $810 million and $875 million, which it had raised from the previous target of $760 million to $825 million.

As predicted, the company lost 3 cents per share. Excluding items, THC reported a profit of 5 cents, bettering the Zacks Consensus Estimate.