Tenet Healthcare (THC) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Tenet Healthcare (THC) closed at $102.05, marking a -1.12% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw an increase of 0.17%.
Heading into today, shares of the hospital operator had gained 11.72% over the past month, outpacing the Medical sector's gain of 0.88% and the S&P 500's gain of 5.34% in that time.
Investors will be eagerly watching for the performance of Tenet Healthcare in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.41, showcasing a 0.7% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $5.12 billion, showing a 1.87% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.09 per share and a revenue of $20.14 billion, representing changes of -12.75% and -2%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Tenet Healthcare. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.65% lower. Tenet Healthcare currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Tenet Healthcare is currently being traded at a Forward P/E ratio of 16.95. This represents a premium compared to its industry's average Forward P/E of 16.5.
Also, we should mention that THC has a PEG ratio of 3.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Hospital stocks are, on average, holding a PEG ratio of 1.94 based on yesterday's closing prices.
The Medical - Hospital industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 38% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Tenet Healthcare Corporation (THC) : Free Stock Analysis Report
