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Tenet Healthcare (THC) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, Tenet Healthcare (THC - Free Report) closed at $127.63, marking a -1.27% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.12%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq decreased by 0.23%.

Shares of the hospital operator witnessed a loss of 3.36% over the previous month, trailing the performance of the Medical sector with its loss of 2.25% and outperforming the S&P 500's loss of 3.45%.

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 February 12, 2025. The company is expected to report EPS of $2.93, up 9.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.16 billion, down 4.03% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Tenet Healthcare. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.63% lower. Currently, Tenet Healthcare is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Tenet Healthcare is currently trading at a Forward P/E ratio of 11.42. For comparison, its industry has an average Forward P/E of 11.93, which means Tenet Healthcare is trading at a discount to the group.

Investors should also note that THC has a PEG ratio of 0.58 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Hospital industry had an average PEG ratio of 0.82 as trading concluded yesterday.

The Medical - Hospital industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 207, placing it within the bottom 18% of over 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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