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Tenet Healthcare (THC) Increases Despite Market Slip: Here's What You Need to Know

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In the latest close session, Tenet Healthcare (THC - Free Report) was up +1.96% at $167.46. The stock's performance was ahead of the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, lost 0.91%.

Coming into today, shares of the hospital operator had lost 0.74% in the past month. In that same time, the Medical sector gained 0%, while the S&P 500 gained 1.44%.

Analysts and investors alike will be keeping a close eye on the performance of Tenet Healthcare in its upcoming earnings disclosure. On that day, Tenet Healthcare is projected to report earnings of $2.84 per share, which would represent year-over-year growth of 22.94%. Alongside, our most recent consensus estimate is anticipating revenue of $5.15 billion, indicating a 0.85% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $12.73 per share and revenue of $20.9 billion, which would represent changes of +7.15% and +1.12%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Tenet Healthcare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.33% higher. Tenet Healthcare currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Tenet Healthcare currently has a Forward P/E ratio of 12.9. This expresses a premium compared to the average Forward P/E of 10.84 of its industry.

One should further note that THC currently holds a PEG ratio of 1.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Hospital industry currently had an average PEG ratio of 1.24 as of yesterday's close.

The Medical - Hospital industry is part of the Medical sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 38% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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