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Tenet Healthcare (THC) Outpaces Stock Market Gains: What You Should Know

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Tenet Healthcare (THC - Free Report) closed at $173.66 in the latest trading session, marking a +1.32% move from the prior day. This move outpaced the S&P 500's daily gain of 0.28%. Meanwhile, the Dow experienced a rise of 0.43%, and the technology-dominated Nasdaq saw an increase of 0.09%.

Shares of the hospital operator have appreciated by 6.19% over the course of the past month, outperforming the Medical sector's gain of 0.24%, and the S&P 500's gain of 4.37%.

Analysts and investors alike will be keeping a close eye on the performance of Tenet Healthcare in its upcoming earnings disclosure. The company's earnings report is set to go public on July 22, 2025. The company's upcoming EPS is projected at $2.84, signifying a 22.94% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.15 billion, indicating a 0.85% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.73 per share and revenue of $20.9 billion. These totals would mark changes of +7.15% and +1.12%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Tenet Healthcare. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained unchanged. As of now, Tenet Healthcare holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Tenet Healthcare is currently exchanging hands at a Forward P/E ratio of 13.47. This valuation marks a premium compared to its industry average Forward P/E of 11.43.

It's also important to note that THC currently trades at a PEG ratio of 1.25. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Hospital was holding an average PEG ratio of 1.28 at yesterday's closing price.

The Medical - Hospital industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 183, finds itself in the bottom 26% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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