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The latest trading session saw Tenet Healthcare (THC) ending at $134.42, denoting a -0.01% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.61% for the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.28%.
Coming into today, shares of the hospital operator had gained 3.64% in the past month. In that same time, the Medical sector gained 1.64%, while the S&P 500 gained 2.08%.
The upcoming earnings release of Tenet Healthcare will be of great interest to investors. The company's earnings report is expected on February 12, 2025. The company's upcoming EPS is projected at $2.93, signifying a 9.33% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.16 billion, down 4.03% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Tenet Healthcare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Tenet Healthcare possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Tenet Healthcare is currently being traded at a Forward P/E ratio of 11.88. This expresses a discount compared to the average Forward P/E of 12.27 of its industry.
Investors should also note that THC has a PEG ratio of 0.6 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. The Medical - Hospital was holding an average PEG ratio of 0.84 at yesterday's closing price.
The Medical - Hospital industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 234, placing it within the bottom 7% of over 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.