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Tenet Healthcare (THC) closed at $129.64 in the latest trading session, marking a +0.14% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.73% for the day. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq added 0.98%.
The hospital operator's shares have seen a decrease of 9.87% over the last month, not keeping up with the Medical sector's loss of 3.8% and the S&P 500's gain of 0.34%.
Market participants will be closely following the financial results of Tenet Healthcare in its upcoming release. It is anticipated that the company will report an EPS of $2.93, marking a 9.33% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $5.16 billion, indicating a 4.03% downward movement from the same quarter last year.
THC's full-year Zacks Consensus Estimates are calling for earnings of $11.37 per share and revenue of $20.76 billion. These results would represent year-over-year changes of +62.89% and +1.01%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Tenet Healthcare. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% decrease. As of now, Tenet Healthcare holds a Zacks Rank of #3 (Hold).
Digging into valuation, Tenet Healthcare currently has a Forward P/E ratio of 11.39. This valuation marks a premium compared to its industry's average Forward P/E of 11.37.
One should further note that THC currently holds a PEG ratio of 0.58. 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 currently had an average PEG ratio of 0.88 as of yesterday's close.
The Medical - Hospital industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 34% of all 250+ industries.