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Why Investors Are Snapping Up Tenet Healthcare (THC) Stock Now
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Tenet Healthcare Corporation (THC - Free Report) is well-poised to grow due to the expanding patient volumes. Its solid Ambulatory Care segment performance is also a major tailwind.
Outperformance & Zacks Rank
Over the year-to-date period, shares of Tenet Healthcare have gained 60.9%, outperforming the industry’s 13.6% growth. Headquartered in Dallas, TX, THC operates as a provider of diversified healthcare services. It has a market cap of $7.8 billion.
Due to its solid prospects, this Zacks Rank #2 (Buy) stock is worth adding to your portfolio at the moment.
Let’s delve deeper.
The Zacks Consensus Estimate for Tenet Healthcare’s current-year earnings is pegged at $5.73 per share, which has witnessed four upward estimate revisions in the past 30 days against none in the opposite direction. The estimate has improved 2.3% during this period. Tenet Healthcare beat on earnings in all the last four quarters, with an average surprise of 25.9%.
Tenet Healthcare Corporation Price and EPS Surprise
The consensus mark for current-year revenues is pegged at $20.3 billion. The company’s operating strength is enabling it to rise above multiple headwinds. Several figures for 2023 were expected to witness a year-over-year decline due to a lack of grant income, gains on asset sales in the previous year, divestments of the San Ramon facility and others, reimbursement changes and other factors.
Nevertheless, its operations in the past couple of quarters remain encouraging for investors. This has helped the company to increase some crucial metrics’ guidance for 2023. Adjusted EBITDA for this year is now expected within $3,310-$3,460 million, up from the previous guidance of $3,210-$3,410 million. Also, adjusted EBITDA margin is now expected in the 16.5-16.9% range, up from the prior band of 16.2-16.9%.
Net cash provided by operating activities is now expected to lie within $1,775-$2,075 million, higher than the earlier guidance of $1,725-$2,025 million.
We expect adjusted patient admissions for this year to jump 4.3% year over year. As seniors resumed undergoing elective procedures, which were delayed due to pandemic-related constraints, patient volumes are expected to remain high.
THC’s Ambulatory Care segment is steadily gaining from USPI's performance. Our estimate for EBITDA from Ambulatory Care for 2023 indicates a more than 14% increase from the year-ago level. Continuous buyouts and tuck-in acquisitions are aiding the unit.
The Zacks Consensus Estimate for HCA Healthcare’s 2023 bottom line suggests a 9.2% increase from the prior-year levels. HCA has witnessed seven upward estimate revisions in the past 60 days against none in the opposite direction. It beat earnings estimates in three of the last four quarters and missed once, with the average surprise being 5.4%.
The Zacks Consensus Estimate for Select Medical’s 2023 earnings indicates a 56.9% year-over-year increase to $1.93 per share. It has witnessed one upward estimate revision over the past week against no movement in the opposite direction. The consensus mark for SEM’s 2023 revenues indicates 4.2% growth from a year ago.
The Zacks Consensus Estimate for Atai Life Sciences’ current-year earnings indicates a 16.3% improvement from the year-ago reported figure. It has witnessed four upward estimate revisions over the past week against no movement in the opposite direction. ATAI beat earnings estimates in two of the last four quarters, met once and missed the same on the other occasion.
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Why Investors Are Snapping Up Tenet Healthcare (THC) Stock Now
Tenet Healthcare Corporation (THC - Free Report) is well-poised to grow due to the expanding patient volumes. Its solid Ambulatory Care segment performance is also a major tailwind.
Outperformance & Zacks Rank
Over the year-to-date period, shares of Tenet Healthcare have gained 60.9%, outperforming the industry’s 13.6% growth. Headquartered in Dallas, TX, THC operates as a provider of diversified healthcare services. It has a market cap of $7.8 billion.
Due to its solid prospects, this Zacks Rank #2 (Buy) stock is worth adding to your portfolio at the moment.
Let’s delve deeper.
The Zacks Consensus Estimate for Tenet Healthcare’s current-year earnings is pegged at $5.73 per share, which has witnessed four upward estimate revisions in the past 30 days against none in the opposite direction. The estimate has improved 2.3% during this period. Tenet Healthcare beat on earnings in all the last four quarters, with an average surprise of 25.9%.
Tenet Healthcare Corporation Price and EPS Surprise
Tenet Healthcare Corporation price-eps-surprise | Tenet Healthcare Corporation Quote
The consensus mark for current-year revenues is pegged at $20.3 billion. The company’s operating strength is enabling it to rise above multiple headwinds. Several figures for 2023 were expected to witness a year-over-year decline due to a lack of grant income, gains on asset sales in the previous year, divestments of the San Ramon facility and others, reimbursement changes and other factors.
Nevertheless, its operations in the past couple of quarters remain encouraging for investors. This has helped the company to increase some crucial metrics’ guidance for 2023. Adjusted EBITDA for this year is now expected within $3,310-$3,460 million, up from the previous guidance of $3,210-$3,410 million. Also, adjusted EBITDA margin is now expected in the 16.5-16.9% range, up from the prior band of 16.2-16.9%.
Net cash provided by operating activities is now expected to lie within $1,775-$2,075 million, higher than the earlier guidance of $1,725-$2,025 million.
We expect adjusted patient admissions for this year to jump 4.3% year over year. As seniors resumed undergoing elective procedures, which were delayed due to pandemic-related constraints, patient volumes are expected to remain high.
THC’s Ambulatory Care segment is steadily gaining from USPI's performance. Our estimate for EBITDA from Ambulatory Care for 2023 indicates a more than 14% increase from the year-ago level. Continuous buyouts and tuck-in acquisitions are aiding the unit.
Other Key Picks
Some other top-ranked stocks in the broader medical space are HCA Healthcare, Inc. (HCA - Free Report) , Select Medical Holdings Corporation (SEM - Free Report) and Atai Life Sciences N.V. (ATAI - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for HCA Healthcare’s 2023 bottom line suggests a 9.2% increase from the prior-year levels. HCA has witnessed seven upward estimate revisions in the past 60 days against none in the opposite direction. It beat earnings estimates in three of the last four quarters and missed once, with the average surprise being 5.4%.
The Zacks Consensus Estimate for Select Medical’s 2023 earnings indicates a 56.9% year-over-year increase to $1.93 per share. It has witnessed one upward estimate revision over the past week against no movement in the opposite direction. The consensus mark for SEM’s 2023 revenues indicates 4.2% growth from a year ago.
The Zacks Consensus Estimate for Atai Life Sciences’ current-year earnings indicates a 16.3% improvement from the year-ago reported figure. It has witnessed four upward estimate revisions over the past week against no movement in the opposite direction. ATAI beat earnings estimates in two of the last four quarters, met once and missed the same on the other occasion.