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Is Tenet Healthcare (THC) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Tenet Healthcare (THC - Free Report) . THC is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.97, which compares to its industry's average of 11.99. Over the last 12 months, THC's Forward P/E has been as high as 16.94 and as low as 8.81, with a median of 12.56.
Investors will also notice that THC has a PEG ratio of 1.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. THC's industry currently sports an average PEG of 1.23. Over the last 12 months, THC's PEG has been as high as 1.36 and as low as 0.55, with a median of 0.82.
Finally, we should also recognize that THC has a P/CF ratio of 6.55. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. THC's P/CF compares to its industry's average P/CF of 6.85. THC's P/CF has been as high as 7.36 and as low as 2.83, with a median of 3.97, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Tenet Healthcare is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THC feels like a great value stock at the moment.
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Is Tenet Healthcare (THC) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Tenet Healthcare (THC - Free Report) . THC is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.97, which compares to its industry's average of 11.99. Over the last 12 months, THC's Forward P/E has been as high as 16.94 and as low as 8.81, with a median of 12.56.
Investors will also notice that THC has a PEG ratio of 1.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. THC's industry currently sports an average PEG of 1.23. Over the last 12 months, THC's PEG has been as high as 1.36 and as low as 0.55, with a median of 0.82.
Finally, we should also recognize that THC has a P/CF ratio of 6.55. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. THC's P/CF compares to its industry's average P/CF of 6.85. THC's P/CF has been as high as 7.36 and as low as 2.83, with a median of 3.97, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Tenet Healthcare is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THC feels like a great value stock at the moment.