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In the latest market close, Tenet Healthcare (THC) reached $125.44, with a -0.46% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 1.78%. Elsewhere, the Dow saw a downswing of 0.99%, while the tech-heavy Nasdaq depreciated by 2.61%.
The hospital operator's stock has dropped by 13.08% in the past month, falling short of the Medical sector's gain of 0.26% and the S&P 500's loss of 3.48%.
The upcoming earnings release of Tenet Healthcare will be of great interest to investors. It is anticipated that the company will report an EPS of $3.10, marking a 3.73% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $5.18 billion, indicating a 3.53% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.06 per share and revenue of $20.84 billion, which would represent changes of +1.52% and +0.87%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Tenet Healthcare. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 7.24% higher. Currently, Tenet Healthcare is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Tenet Healthcare is presently being traded at a Forward P/E ratio of 10.45. This denotes a premium relative to the industry's average Forward P/E of 10.14.
We can also see that THC currently has a PEG ratio of 0.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Hospital industry currently had an average PEG ratio of 1.02 as of yesterday's close.
The Medical - Hospital industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 33% echelons of all 250+ industries.