Why the Market Dipped But Tenet Healthcare (THC) Gained Today
In the latest market close, Tenet Healthcare (THC) reached $95.56, with a +1.99% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 1.02%. Elsewhere, the Dow lost 1.04%, while the tech-heavy Nasdaq lost 1.65%.
The the stock of hospital operator has risen by 4.06% in the past month, lagging the Medical sector's gain of 4.07% and overreaching the S&P 500's gain of 3.64%.
The upcoming earnings release of Tenet Healthcare will be of great interest to investors. It is anticipated that the company will report an EPS of $1.41, marking a 0.7% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $5.12 billion, reflecting a 1.87% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.93 per share and a revenue of $20.14 billion, indicating changes of -15.04% and -2%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Tenet Healthcare. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 5.26% higher within the past month. Tenet Healthcare is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Tenet Healthcare's current valuation metrics, including its Forward P/E ratio of 15.8. This denotes a premium relative to the industry's average Forward P/E of 15.57.
One should further note that THC currently holds a PEG ratio of 3.02. 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. As of the close of trade yesterday, the Medical - Hospital industry held an average PEG ratio of 2.03.
The Medical - Hospital industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Tenet Healthcare Corporation (THC) : Free Stock Analysis Report
