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Tenet Healthcare (THC) ended the recent trading session at $133.04, demonstrating a +1.73% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 1.12%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 2.04%.
The the stock of hospital operator has fallen by 2.82% in the past month, leading the Medical sector's loss of 2.99% and the S&P 500's loss of 2.91%.
The investment community will be closely monitoring the performance of Tenet Healthcare in its forthcoming earnings report. The company is predicted to post an EPS of $3.11, indicating a 3.42% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.17 billion, down 3.71% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.12 per share and revenue of $20.84 billion, indicating changes of +2.02% and +0.85%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Tenet Healthcare. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding 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, 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. Over the past month, there's been a 0.61% fall in the Zacks Consensus EPS estimate. Right now, Tenet Healthcare possesses a Zacks Rank of #3 (Hold).
Investors should also note Tenet Healthcare's current valuation metrics, including its Forward P/E ratio of 10.8. This valuation marks a premium compared to its industry's average Forward P/E of 10.45.
Investors should also note that THC has a PEG ratio of 0.98 right now. 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. THC's industry had an average PEG ratio of 1.07 as of yesterday's close.
The Medical - Hospital industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% of all 250+ industries.