U.S. markets close in 1 hour 48 minutes
  • S&P 500

    4,222.63
    -23.96 (-0.56%)
     
  • Dow 30

    34,094.02
    -205.31 (-0.60%)
     
  • Nasdaq

    13,994.32
    -78.54 (-0.56%)
     
  • Russell 2000

    2,307.96
    -12.11 (-0.52%)
     
  • Crude Oil

    71.86
    -0.26 (-0.36%)
     
  • Gold

    1,850.50
    -5.90 (-0.32%)
     
  • Silver

    27.67
    -0.02 (-0.07%)
     
  • EUR/USD

    1.2054
    -0.0079 (-0.65%)
     
  • 10-Yr Bond

    1.4870
    -0.0120 (-0.80%)
     
  • GBP/USD

    1.4042
    -0.0040 (-0.29%)
     
  • USD/JPY

    110.3500
    +0.3160 (+0.29%)
     
  • BTC-USD

    39,123.71
    -2,066.51 (-5.02%)
     
  • CMC Crypto 200

    957.25
    -35.22 (-3.55%)
     
  • FTSE 100

    7,184.95
    +12.47 (+0.17%)
     
  • Nikkei 225

    29,291.01
    -150.29 (-0.51%)
     

Is Tenet Healthcare (THC) a Great Value Stock Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Tenet Healthcare (THC). THC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 16.02 right now. For comparison, its industry sports an average P/E of 19.82. Over the last 12 months, THC's Forward P/E has been as high as 18.64 and as low as 3.63, with a median of 11.58.

Another notable valuation metric for THC is its P/B ratio of 9.82. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. THC's current P/B looks attractive when compared to its industry's average P/B of 23.19. Over the past year, THC's P/B has been as high as 10.26 and as low as 2.37, with a median of 4.87.

These are just a handful of the figures considered in Tenet Healthcare's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that THC is an impressive value stock right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Tenet Healthcare Corporation (THC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.