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Zacks Investment Ideas feature highlights: Tenet Healthcare and HCA Healthcare
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For Immediate Release
Chicago, IL – March 7, 2022 – Today, Zacks Investment Ideas feature highlights Tenet Healthcare Corp. (THC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) .
Hospital Stocks Hovering Near 52-Week Highs Despite Market Volatility
“You’ve only got to remember one thing…you always want to be with whatever the predominant trend is.” – Paul Tudor Jones
One of the great investors of our time, Paul Tudor Jones understood that in order to thrive in the market, he must remain modest and understand that the market is the horse. As an investor, he is simply the chariot following the horse.
It’s a lesson in humility – no matter how good someone is, if they want to survive in the market over an extended period of time, they’d better understand that they need to follow the general trend of a stock instead of fighting it.
Yet most investors have been doing the exact opposite for the past several months. As most equities have been falling, investors have been buying their favorite stocks at ‘discounted’ prices, only to see them continue to fall. They’ve been averaging down only to see their portfolio values steadily decline. It might work well in good times, but when the bears come calling this strategy gets exposed.
A much more prudent approach during volatile times is to find stocks that are outperforming the market. Locate companies that have established their own positive trends and are bucking the overall direction of the major indices. These stocks are outperforming for a reason.
We’ve identified two well-established healthcare companies that have weathered the recent volatility and are both trading right near their respective 52-week highs. While many stocks are in bear market territory, these stocks continue to outpace their peers.
Both companies are components of the Zacks Medical-Hospital industry group, which currently ranks in the top 22% out of approximately 250 different industry groups. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months.
Quantitative research studies have shown that roughly half of a stock’s future price appreciation can be attributed to its industry group. In fact, according to our proprietary study, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By investing in stocks contained within the top industry groups, we can provide a constant ‘tailwind’ to our investing success.
Tenet Healthcare Corp.
Tenet Healthcare functions as a diversified healthcare company. THC owns and operates general hospitals and related healthcare facilities across the U.S. that provide acute care services, operating and recovery rooms, radiology and respiratory therapy, and pharmacies. The company operates 60 hospitals and approximately 550 related healthcare facilities including urgent care, imaging centers and surgery locations. Tenet Healthcare was incorporated in 1975 and is based in Dallas, TX.
THC has beaten earnings estimates in each of the past eight quarters. The healthcare provider most recently reported Q4 EPS results earlier this month of $2.70, a +73.08% surprise over the $1.56 consensus. Over the past four quarters, THC has delivered a +66.01% average earnings surprise, helping push the stock nearly 70% higher in the past year.
With a strong trend intact, analysts have been revising future EPS projections and the stock has been responding in kind. 2023 EPS estimates were revised upward by +9.26% in the past 60 days to $7.67, which would translate to 16.73% growth over the $6.57 expected this year. THC stock hit a fresh 52-week high just yesterday.
HCA Healthcare, Inc.
HCA Healthcare is a non-governmental healthcare services company. HCA operates a network of acute care and general hospitals, radiation and oncology centers, rehabilitation and physical therapy locations, imaging centers, and related facilities. The company operates over 180 hospitals and approximately 2,200 ambulatory centers in the United States and the United Kingdom. HCA Healthcare was founded in 1968 and is based in Nashville, TN.
HCA has exceeded earnings estimates in four of the past five quarters. The sole miss came in Q4 of last year when the company reported EPS of $4.42, just slightly missing the $4.55 estimate by -2.86%. Even taking that into account, the company has posted an average earnings surprise of +17.51%, which has helped HCA stock climb just under 50% in the past year.
HCA has been on the receiving end of positive earnings estimate revisions as of late. The current quarter estimate was revised +1.61% in the past 60 days. The Q1 EPS consensus now stands at $4.41, which would reflect 6.52% growth over the same quarter last year. Sales are seen climbing 6.29% to $14.86 billion. HCA has been benefiting from overall positive trends in both earnings and revenues:
HCA is scheduled to report Q1 earnings on April 28th. Make sure to keep an eye on these two healthcare companies that are outperforming the market.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Tenet Healthcare and HCA Healthcare
For Immediate Release
Chicago, IL – March 7, 2022 – Today, Zacks Investment Ideas feature highlights Tenet Healthcare Corp. (THC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) .
Hospital Stocks Hovering Near 52-Week Highs Despite Market Volatility
“You’ve only got to remember one thing…you always want to be with whatever the predominant trend is.” – Paul Tudor Jones
One of the great investors of our time, Paul Tudor Jones understood that in order to thrive in the market, he must remain modest and understand that the market is the horse. As an investor, he is simply the chariot following the horse.
It’s a lesson in humility – no matter how good someone is, if they want to survive in the market over an extended period of time, they’d better understand that they need to follow the general trend of a stock instead of fighting it.
Yet most investors have been doing the exact opposite for the past several months. As most equities have been falling, investors have been buying their favorite stocks at ‘discounted’ prices, only to see them continue to fall. They’ve been averaging down only to see their portfolio values steadily decline. It might work well in good times, but when the bears come calling this strategy gets exposed.
A much more prudent approach during volatile times is to find stocks that are outperforming the market. Locate companies that have established their own positive trends and are bucking the overall direction of the major indices. These stocks are outperforming for a reason.
We’ve identified two well-established healthcare companies that have weathered the recent volatility and are both trading right near their respective 52-week highs. While many stocks are in bear market territory, these stocks continue to outpace their peers.
Both companies are components of the Zacks Medical-Hospital industry group, which currently ranks in the top 22% out of approximately 250 different industry groups. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months.
Quantitative research studies have shown that roughly half of a stock’s future price appreciation can be attributed to its industry group. In fact, according to our proprietary study, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By investing in stocks contained within the top industry groups, we can provide a constant ‘tailwind’ to our investing success.
Tenet Healthcare Corp.
Tenet Healthcare functions as a diversified healthcare company. THC owns and operates general hospitals and related healthcare facilities across the U.S. that provide acute care services, operating and recovery rooms, radiology and respiratory therapy, and pharmacies. The company operates 60 hospitals and approximately 550 related healthcare facilities including urgent care, imaging centers and surgery locations. Tenet Healthcare was incorporated in 1975 and is based in Dallas, TX.
THC has beaten earnings estimates in each of the past eight quarters. The healthcare provider most recently reported Q4 EPS results earlier this month of $2.70, a +73.08% surprise over the $1.56 consensus. Over the past four quarters, THC has delivered a +66.01% average earnings surprise, helping push the stock nearly 70% higher in the past year.
With a strong trend intact, analysts have been revising future EPS projections and the stock has been responding in kind. 2023 EPS estimates were revised upward by +9.26% in the past 60 days to $7.67, which would translate to 16.73% growth over the $6.57 expected this year. THC stock hit a fresh 52-week high just yesterday.
HCA Healthcare, Inc.
HCA Healthcare is a non-governmental healthcare services company. HCA operates a network of acute care and general hospitals, radiation and oncology centers, rehabilitation and physical therapy locations, imaging centers, and related facilities. The company operates over 180 hospitals and approximately 2,200 ambulatory centers in the United States and the United Kingdom. HCA Healthcare was founded in 1968 and is based in Nashville, TN.
HCA has exceeded earnings estimates in four of the past five quarters. The sole miss came in Q4 of last year when the company reported EPS of $4.42, just slightly missing the $4.55 estimate by -2.86%. Even taking that into account, the company has posted an average earnings surprise of +17.51%, which has helped HCA stock climb just under 50% in the past year.
HCA has been on the receiving end of positive earnings estimate revisions as of late. The current quarter estimate was revised +1.61% in the past 60 days. The Q1 EPS consensus now stands at $4.41, which would reflect 6.52% growth over the same quarter last year. Sales are seen climbing 6.29% to $14.86 billion. HCA has been benefiting from overall positive trends in both earnings and revenues:
HCA is scheduled to report Q1 earnings on April 28th. Make sure to keep an eye on these two healthcare companies that are outperforming the market.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
See Stocks Now >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.