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Tenet Healthcare (THC) Stock Declines While Market Improves: Some Information for Investors

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Tenet Healthcare (THC - Free Report) closed the latest trading day at $156.57, indicating a -0.11% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.9%. Elsewhere, the Dow saw an upswing of 0.81%, while the tech-heavy Nasdaq appreciated by 1.22%.

The the stock of hospital operator has fallen by 3.24% in the past month, leading the Medical sector's loss of 4.05% and undershooting the S&P 500's gain of 3.15%.

The upcoming earnings release of Tenet Healthcare will be of great interest to investors. The company's earnings report is expected on October 29, 2024. The company is expected to report EPS of $2.33, up 61.81% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $5.05 billion, indicating a 0.41% decrease compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.72 per share and revenue of $20.84 billion, indicating changes of +53.58% and +1.4%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Tenet Healthcare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. Tenet Healthcare currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Tenet Healthcare is currently trading at a Forward P/E ratio of 14.62. Its industry sports an average Forward P/E of 15.39, so one might conclude that Tenet Healthcare is trading at a discount comparatively.

Meanwhile, THC's PEG ratio is currently 0.8. 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 average PEG ratio for the Medical - Hospital industry stood at 1.13 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 2, positioning it in the top 1% 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.

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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