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Why Tenet Healthcare (THC) Outpaced the Stock Market Today
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Tenet Healthcare (THC - Free Report) ended the recent trading session at $130.78, demonstrating a +1% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.16% gain on the day. Elsewhere, the Dow saw an upswing of 0.01%, while the tech-heavy Nasdaq appreciated by 0.46%.
Prior to today's trading, shares of the hospital operator had lost 1.57% over the past month. This has lagged the Medical sector's loss of 1.17% and was narrower than the S&P 500's loss of 3.59% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Tenet Healthcare in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.11, marking a 3.42% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.18 billion, showing a 3.53% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $12.12 per share and a revenue of $20.84 billion, demonstrating changes of +2.02% and +0.87%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Tenet Healthcare. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.61% lower. Tenet Healthcare is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Tenet Healthcare has a Forward P/E ratio of 10.69 right now. For comparison, its industry has an average Forward P/E of 10.42, which means Tenet Healthcare is trading at a premium to the group.
Meanwhile, THC's PEG ratio is currently 0.97. 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. The Medical - Hospital was holding an average PEG ratio of 1.06 at yesterday's closing price.
The Medical - Hospital industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 33% of all 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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Why Tenet Healthcare (THC) Outpaced the Stock Market Today
Tenet Healthcare (THC - Free Report) ended the recent trading session at $130.78, demonstrating a +1% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.16% gain on the day. Elsewhere, the Dow saw an upswing of 0.01%, while the tech-heavy Nasdaq appreciated by 0.46%.
Prior to today's trading, shares of the hospital operator had lost 1.57% over the past month. This has lagged the Medical sector's loss of 1.17% and was narrower than the S&P 500's loss of 3.59% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Tenet Healthcare in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.11, marking a 3.42% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.18 billion, showing a 3.53% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $12.12 per share and a revenue of $20.84 billion, demonstrating changes of +2.02% and +0.87%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Tenet Healthcare. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.61% lower. Tenet Healthcare is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Tenet Healthcare has a Forward P/E ratio of 10.69 right now. For comparison, its industry has an average Forward P/E of 10.42, which means Tenet Healthcare is trading at a premium to the group.
Meanwhile, THC's PEG ratio is currently 0.97. 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. The Medical - Hospital was holding an average PEG ratio of 1.06 at yesterday's closing price.
The Medical - Hospital industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 33% of all 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.