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Tenet Healthcare (THC) Laps the Stock Market: Here's Why
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Tenet Healthcare (THC - Free Report) ended the recent trading session at $179.11, demonstrating a +2.55% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 1.65%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 3.07%.
The hospital operator's shares have seen a decrease of 11.19% over the last month, not keeping up with the Medical sector's gain of 3.59% and the S&P 500's gain of 0.48%.
Investors will be eagerly watching for the performance of Tenet Healthcare in its upcoming earnings disclosure. In that report, analysts expect Tenet Healthcare to post earnings of $4.08 per share. This would mark year-over-year growth of 1.49%. Alongside, our most recent consensus estimate is anticipating revenue of $5.39 billion, indicating a 2.27% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.61 per share and revenue of $22.02 billion. These totals would mark changes of +4.95% and +3.32%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Tenet Healthcare. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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 shifted 0.67% upward. Tenet Healthcare presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, Tenet Healthcare is currently exchanging hands at a Forward P/E ratio of 9.92. Its industry sports an average Forward P/E of 9.92, so one might conclude that Tenet Healthcare is trading at no noticeable deviation comparatively.
It's also important to note that THC currently trades at a PEG ratio of 1.44. 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. Medical - Hospital stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Medical - Hospital industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 108, finds itself in the top 45% echelons of all 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.
To follow THC in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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Tenet Healthcare (THC) Laps the Stock Market: Here's Why
Tenet Healthcare (THC - Free Report) ended the recent trading session at $179.11, demonstrating a +2.55% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 1.65%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 3.07%.
The hospital operator's shares have seen a decrease of 11.19% over the last month, not keeping up with the Medical sector's gain of 3.59% and the S&P 500's gain of 0.48%.
Investors will be eagerly watching for the performance of Tenet Healthcare in its upcoming earnings disclosure. In that report, analysts expect Tenet Healthcare to post earnings of $4.08 per share. This would mark year-over-year growth of 1.49%. Alongside, our most recent consensus estimate is anticipating revenue of $5.39 billion, indicating a 2.27% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.61 per share and revenue of $22.02 billion. These totals would mark changes of +4.95% and +3.32%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Tenet Healthcare. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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 shifted 0.67% upward. Tenet Healthcare presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, Tenet Healthcare is currently exchanging hands at a Forward P/E ratio of 9.92. Its industry sports an average Forward P/E of 9.92, so one might conclude that Tenet Healthcare is trading at no noticeable deviation comparatively.
It's also important to note that THC currently trades at a PEG ratio of 1.44. 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. Medical - Hospital stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Medical - Hospital industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 108, finds itself in the top 45% echelons of all 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.
To follow THC in the coming trading sessions, be sure to utilize Zacks.com.