For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Tenet Healthcare (THC) ten years ago? It may not have been easy to hold on to THC for all that time, but if you did, how much would your investment be worth today?
Tenet Healthcare's Business In-Depth
With that in mind, let's take a look at Tenet Healthcare's main business drivers.
Founded in 1967 and headquartered in Dallas, TX, Tenet Healthcare Corp., is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida. The company has investments in other health care companies and is one of the largest investor-owned health care delivery systems in the United States.
Tenet Healthcare and its subsidiaries provide healthcare services primarily through general hospitals and related healthcare facilities. Its hospitals offer acute care services, operating and recovery rooms, radiology services, respiratory therapy services, clinical laboratories, and pharmacies; intensive care, critical and coronary care units; physical therapy along with orthopedic, oncology, and outpatient services. The related health care facilities include rehabilitation hospitals, specialty hospitals and long-term care facilities.
As of Dec 31, 2024, the company operated an expansive care network that included 49 hospitals and more than 575 other healthcare facilities, including ambulatory surgery centers, urgent care centers, imaging centers, surgical hospitals, off-campus emergency departments and micro-hospitals through its units, partnerships and joint ventures. Effective fourth-quarter 2023, the company combined its Conifer segment with the Hospital segment and now has two reporting segments: Hospital Operations and Services and Ambulatory Care.
Hospital Segment (78.1% of total segment revenues in 2024): It includes 61 hospitals catering to primarily urban and suburban communities in nine states. The unit also provides a number of services primarily to healthcare providers to assist them in generating sustainable improvements in their operating margins, while also managing patient, physician and employee satisfaction.
Ambulatory Care (21.9%): The company's Ambulatory Care segment includes the operations of its USPI joint venture and its Aspen facilities.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Tenet Healthcare, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in August 2015 would be worth $3,456.22, or a gain of 245.62%, as of August 20, 2025, and this return excludes dividends but includes price increases.
The S&P 500 rose 208.30% and the price of gold increased 176.41% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for THC.
Tenet Healthcare's performance is fueled by increasing revenues per adjusted admissions, while its strategy of acquisitions and alliances expands the scale of its business through inorganic growth. We expect the company to see admissions increase in the second half of the year. Revenue per adjusted admission rose 4% YoY in first half of 2025. Net operating revenues from the hospital segment are expected to be within $15.95-$16.1 billion in 2025. As of June 30, 2025, USPI had interests in 521 ambulatory surgery centers. Adjusted EPS is expected to be within $15.55-$16.21 in 2025. YTD, the THC's shares have outperformed the industry. It plans to continue allocating more capital to this service line, in a bid to drive organic growth. Consequently, THC is expected to offer substantial upside potential from the current price levels.
Shares have gained 14.14% over the past four weeks and there have been 9 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
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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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