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Tenet Healthcare (THC) Gains As Market Dips: What You Should Know

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Tenet Healthcare (THC - Free Report) closed the most recent trading day at $77.24, moving +0.78% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.7%. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 1.06%.

Prior to today's trading, shares of the hospital operator had gained 4.71% over the past month. This has outpaced the Medical sector's gain of 0.86% and the S&P 500's gain of 0.58% in that time.

Tenet Healthcare will be looking to display strength as it nears its next earnings release. In that report, analysts expect Tenet Healthcare to post earnings of $1.18 per share. This would mark a year-over-year decline of 18.06%. Meanwhile, our latest consensus estimate is calling for revenue of $5.02 billion, up 4.53% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.73 per share and revenue of $20.29 billion, which would represent changes of -15.74% and +5.83%, respectively, from the prior year.

Any recent changes to analyst estimates for Tenet Healthcare should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.33% higher. Tenet Healthcare is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Tenet Healthcare's current valuation metrics, including its Forward P/E ratio of 13.37. This valuation marks a discount compared to its industry's average Forward P/E of 14.12.

We can also see that THC currently has a PEG ratio of 2.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Hospital industry currently had an average PEG ratio of 1.67 as of yesterday's close.

The Medical - Hospital industry is part of the Medical sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.

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.

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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