Tenet Healthcare (THC) closed at $74.23 in the latest trading session, marking a +0.49% move from the prior day. This change lagged the S&P 500’s 0.67% gain on the day. Elsewhere, the Dow gained 0.73%, while the tech-heavy Nasdaq added 0.94%.
Heading into today, shares of the hospital operator had gained 0.81% over the past month, outpacing the Medical sector’s loss of 1.8% and the S&P 500’s loss of 3.8% in that time.
Tenet Healthcare will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.18, down 18.06% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.02 billion, up 4.53% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.73 per share and revenue of $20.29 billion. These totals would mark changes of -15.74% and +5.82%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Tenet Healthcare. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.34% higher. Tenet Healthcare is currently a Zacks Rank #2 (Buy).
Investors should also note Tenet Healthcare’s current valuation metrics, including its Forward P/E ratio of 12.89. For comparison, its industry has an average Forward P/E of 13.84, which means Tenet Healthcare is trading at a discount to the group.
Investors should also note that THC has a PEG ratio of 1.98 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. Medical – Hospital stocks are, on average, holding a PEG ratio of 1.67 based on yesterday’s closing prices.
The Medical – Hospital industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Tenet Healthcare Corporation (THC) : Free Stock Analysis Report
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