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Should Value Investors Buy Tenet Healthcare (THC) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Tenet Healthcare (THC - Free Report) . THC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 14.52, while its industry has an average P/E of 16.08. Over the past 52 weeks, THC's Forward P/E has been as high as 18.48 and as low as 8.31, with a median of 14.87.
We also note that THC holds a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. THC's PEG compares to its industry's average PEG of 1.18. Within the past year, THC's PEG has been as high as 5.07 and as low as 0.76, with a median of 1.73.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. THC has a P/S ratio of 0.74. This compares to its industry's average P/S of 1.03.
Finally, investors will want to recognize that THC has a P/CF ratio of 4.27. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. THC's current P/CF looks attractive when compared to its industry's average P/CF of 8.26. Over the past 52 weeks, THC's P/CF has been as high as 7.24 and as low as 2.61, with a median of 4.34.
These are just a handful of the figures considered in Tenet Healthcare's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that THC is an impressive value stock right now.
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Should Value Investors Buy Tenet Healthcare (THC) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Tenet Healthcare (THC - Free Report) . THC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 14.52, while its industry has an average P/E of 16.08. Over the past 52 weeks, THC's Forward P/E has been as high as 18.48 and as low as 8.31, with a median of 14.87.
We also note that THC holds a PEG ratio of 0.79. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. THC's PEG compares to its industry's average PEG of 1.18. Within the past year, THC's PEG has been as high as 5.07 and as low as 0.76, with a median of 1.73.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. THC has a P/S ratio of 0.74. This compares to its industry's average P/S of 1.03.
Finally, investors will want to recognize that THC has a P/CF ratio of 4.27. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. THC's current P/CF looks attractive when compared to its industry's average P/CF of 8.26. Over the past 52 weeks, THC's P/CF has been as high as 7.24 and as low as 2.61, with a median of 4.34.
These are just a handful of the figures considered in Tenet Healthcare's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that THC is an impressive value stock right now.