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Tenet Healthcare (THC) Advances But Underperforms Market: Key Facts

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Tenet Healthcare (THC - Free Report) closed the most recent trading day at $139.67, moving +0.56% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.92%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 2.03%.

The hospital operator's stock has climbed by 10.74% in the past month, exceeding the Medical sector's gain of 3.83% and the S&P 500's gain of 0.81%.

The investment community will be closely monitoring the performance of Tenet Healthcare in its forthcoming earnings report. The company is scheduled to release its earnings on February 12, 2025. The company's earnings per share (EPS) are projected to be $2.93, reflecting a 9.33% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $5.16 billion, showing a 4.03% drop compared to the year-ago quarter.

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. 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. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Tenet Healthcare boasts a Zacks Rank of #3 (Hold).

Investors should also note Tenet Healthcare's current valuation metrics, including its Forward P/E ratio of 12.27. This signifies a discount in comparison to the average Forward P/E of 12.57 for its industry.

It is also worth noting that THC currently has a PEG ratio of 0.63. 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. THC's industry had an average PEG ratio of 0.88 as of yesterday's close.

The Medical - Hospital industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 174, placing it within the bottom 31% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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