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Tenet Healthcare (THC) Beats Stock Market Upswing: What Investors Need to Know

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Tenet Healthcare (THC - Free Report) closed at $168.03 in the latest trading session, marking a +1.74% move from the prior day. This move outpaced the S&P 500's daily gain of 0.28%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.15%.

The hospital operator's stock has climbed by 0.38% in the past month, paralleling the Medical sector and lagging the S&P 500's gain of 2%.

Analysts and investors alike will be keeping a close eye on the performance of Tenet Healthcare in its upcoming earnings disclosure. On that day, Tenet Healthcare is projected to report earnings of $2.33 per share, which would represent year-over-year growth of 61.81%. Simultaneously, our latest consensus estimate expects the revenue to be $5.05 billion, showing a 0.41% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.72 per share and revenue of $20.84 billion, indicating changes of +53.58% and +1.4%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Tenet Healthcare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.14% increase. Tenet Healthcare presently features a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Tenet Healthcare is presently being traded at a Forward P/E ratio of 15.41. This indicates a discount in contrast to its industry's Forward P/E of 16.72.

It is also worth noting that THC currently has a PEG ratio of 0.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - Hospital industry had an average PEG ratio of 1.18 as trading concluded yesterday.

The Medical - Hospital industry is part of the Medical sector. This group has a Zacks Industry Rank of 3, putting it in the top 2% of all 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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