Tenet Healthcare (THC) closed at $203.38 in the latest trading session, marking a +1.01% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.39%.
Shares of the hospital operator have appreciated by 7.72% over the course of the past month, outperforming the Medical sector's gain of 5.06%, and the S&P 500's gain of 3.94%.
Investors will be eagerly watching for the performance of Tenet Healthcare in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 28, 2025. The company is expected to report EPS of $3.35, up 14.33% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $5.25 billion, indicating a 2.42% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.85 per share and revenue of $21.15 billion, indicating changes of +33.42% and +2.36%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Tenet Healthcare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Tenet Healthcare possesses a Zacks Rank of #2 (Buy).
Looking at its valuation, Tenet Healthcare is holding a Forward P/E ratio of 12.71. This signifies a premium in comparison to the average Forward P/E of 11.34 for its industry.
Also, we should mention that THC has a PEG ratio of 0.86. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Hospital industry currently had an average PEG ratio of 1.11 as of yesterday's close.
The Medical - Hospital industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 36% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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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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