In the latest trading session, Tenet Healthcare (THC) closed at $175.14, marking a +1.01% move from the previous day. This change outpaced the S&P 500's 0.54% gain on the day. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq increased by 0.74%.
Prior to today's trading, shares of the hospital operator had gained 3.47% outpaced the Medical sector's loss of 2.12% and lagged the S&P 500's gain of 4.2%.
The upcoming earnings release of Tenet Healthcare will be of great interest to investors. The company's earnings report is expected on July 22, 2025. The company's upcoming EPS is projected at $2.82, signifying a 22.08% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.15 billion, showing a 0.85% escalation compared to the year-ago quarter.
THC's full-year Zacks Consensus Estimates are calling for earnings of $12.75 per share and revenue of $20.9 billion. These results would represent year-over-year changes of +7.32% and +1.12%, respectively.
It is also important to note the recent changes to analyst estimates for Tenet Healthcare. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.15% upward. At present, Tenet Healthcare boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Tenet Healthcare is currently exchanging hands at a Forward P/E ratio of 13.6. This expresses a premium compared to the average Forward P/E of 11.18 of its industry.
It is also worth noting that THC currently has a PEG ratio of 1.26. 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. As of the close of trade yesterday, the Medical - Hospital industry held an average PEG ratio of 1.26.
The Medical - Hospital industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 205, placing it within the bottom 18% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Tenet Healthcare Corporation (THC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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