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Tenet Healthcare (THC) Outperforms Broader Market: What You Need to Know
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Tenet Healthcare (THC - Free Report) closed at $75.56 in the latest trading session, marking a +0.77% move from the prior day. This move outpaced the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
Prior to today's trading, shares of the hospital operator had gained 15.44% over the past month. This has outpaced the Medical sector's gain of 5.08% and the S&P 500's gain of 5.16% in that time.
The investment community will be closely monitoring the performance of Tenet Healthcare in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.54, reflecting a 21.43% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.23 billion, up 4.85% from the year-ago period.
THC's full-year Zacks Consensus Estimates are calling for earnings of $5.86 per share and revenue of $20.4 billion. These results would represent year-over-year changes of -13.82% and +6.4%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Tenet Healthcare. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.31% higher. Tenet Healthcare currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Tenet Healthcare is currently trading at a Forward P/E ratio of 12.8. This indicates a discount in contrast to its industry's Forward P/E of 14.61.
We can also see that THC currently has a PEG ratio of 4.21. 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. By the end of yesterday's trading, the Medical - Hospital industry had an average PEG ratio of 1.77.
The Medical - Hospital industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 171, placing it within the bottom 33% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Tenet Healthcare (THC) Outperforms Broader Market: What You Need to Know
Tenet Healthcare (THC - Free Report) closed at $75.56 in the latest trading session, marking a +0.77% move from the prior day. This move outpaced the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
Prior to today's trading, shares of the hospital operator had gained 15.44% over the past month. This has outpaced the Medical sector's gain of 5.08% and the S&P 500's gain of 5.16% in that time.
The investment community will be closely monitoring the performance of Tenet Healthcare in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.54, reflecting a 21.43% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.23 billion, up 4.85% from the year-ago period.
THC's full-year Zacks Consensus Estimates are calling for earnings of $5.86 per share and revenue of $20.4 billion. These results would represent year-over-year changes of -13.82% and +6.4%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Tenet Healthcare. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.31% higher. Tenet Healthcare currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Tenet Healthcare is currently trading at a Forward P/E ratio of 12.8. This indicates a discount in contrast to its industry's Forward P/E of 14.61.
We can also see that THC currently has a PEG ratio of 4.21. 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. By the end of yesterday's trading, the Medical - Hospital industry had an average PEG ratio of 1.77.
The Medical - Hospital industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 171, placing it within the bottom 33% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.