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Tenet Healthcare (THC) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Tenet Healthcare (THC - Free Report) closed the most recent trading day at $152.78, moving -0.84% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.21%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.05%.

Prior to today's trading, shares of the hospital operator had lost 2.28% over the past month. This has was narrower than the Medical sector's loss of 3.28% and lagged the S&P 500's gain of 5.94% in that time.

The investment community will be closely monitoring the performance of Tenet Healthcare in its forthcoming earnings report. The company is scheduled to release its earnings on October 29, 2024. The company is expected to report EPS of $2.33, up 61.81% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.05 billion, down 0.41% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.73 per share and revenue of $20.82 billion, which would represent changes of +53.72% and +1.32%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Tenet Healthcare. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.21% higher. Tenet Healthcare currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Tenet Healthcare is holding a Forward P/E ratio of 14.36. This signifies a discount in comparison to the average Forward P/E of 14.92 for its industry.

We can additionally observe that THC currently boasts a PEG ratio of 0.78. 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 Medical - Hospital industry had an average PEG ratio of 1.11 as trading concluded yesterday.

The Medical - Hospital industry is part of the Medical sector. With its current Zacks Industry Rank of 14, this industry ranks in the top 6% of all industries, numbering over 250.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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