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Tenet Healthcare (THC) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest market close, Tenet Healthcare (THC - Free Report) reached $163.87, with a +1.34% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.4%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.63%.

Heading into today, shares of the hospital operator had lost 3.28% over the past month, outpacing the Medical sector's loss of 3.63% and lagging the S&P 500's gain of 3.76% in that time.

The investment community will be paying close attention to the earnings performance of Tenet Healthcare in its upcoming release. The company is slated to reveal its earnings on October 29, 2024. The company is forecasted to report an EPS of $2.33, showcasing a 61.81% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $5.05 billion, down 0.38% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.72 per share and a revenue of $20.8 billion, indicating changes of +53.58% and +1.22%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Tenet Healthcare. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Tenet Healthcare presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Tenet Healthcare is at present trading with a Forward P/E ratio of 15.09. This valuation marks a discount compared to its industry's average Forward P/E of 16.

Also, we should mention that THC has a PEG ratio of 0.82. 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 was holding an average PEG ratio of 1.17 at yesterday's closing price.

The Medical - Hospital industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 13, finds itself in the top 6% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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