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Tenet Healthcare (THC) closed the latest trading day at $133.40, indicating a -0.82% change from the previous session's end. This change lagged the S&P 500's 0.38% gain on the day. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq increased by 0.87%.
The hospital operator's stock has climbed by 7.98% in the past month, exceeding the Medical sector's loss of 3.56% and the S&P 500's loss of 5.59%.
The investment community will be closely monitoring the performance of Tenet Healthcare in its forthcoming earnings report. On that day, Tenet Healthcare is projected to report earnings of $3.12 per share, which would represent a year-over-year decline of 3.11%. In the meantime, our current consensus estimate forecasts the revenue to be $5.17 billion, indicating a 3.66% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.15 per share and revenue of $20.88 billion. These totals would mark changes of +2.27% and +1.06%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Tenet Healthcare. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% increase. Tenet Healthcare currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Tenet Healthcare is currently being traded at a Forward P/E ratio of 11.07. This denotes a premium relative to the industry's average Forward P/E of 10.85.
We can additionally observe that THC currently boasts a PEG ratio of 1.01. 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. Medical - Hospital stocks are, on average, holding a PEG ratio of 1.1 based on yesterday's closing prices.