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Tenet Healthcare (THC) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest trading session, Tenet Healthcare (THC - Free Report) closed at $195.19, marking a -2.01% move from the previous day. This move lagged the S&P 500's daily loss of 0.53%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1%.

The hospital operator's shares have seen an increase of 1.17% over the last month, surpassing the Medical sector's gain of 0.09% and falling behind the S&P 500's gain of 2.06%.

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 February 11, 2026. It is anticipated that the company will report an EPS of $4.05, marking a 17.73% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.45 billion, showing a 7.44% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $16.15 per share and revenue of $21.27 billion, which would represent changes of +35.94% and 0%, respectively, from the prior year.

Investors might also notice recent changes 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Tenet Healthcare boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Tenet Healthcare is currently exchanging hands at a Forward P/E ratio of 11.99. This expresses a premium compared to the average Forward P/E of 8.61 of its industry.

Meanwhile, THC's PEG ratio is currently 0.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Medical - Hospital industry stood at 0.84 at the close of the market yesterday.

The Medical - Hospital industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 194, positioning it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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