In the latest market close, Tenet Healthcare (THC) reached $119.72, with a -0.52% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.23%. Meanwhile, the Dow lost 0.91%, and the Nasdaq, a tech-heavy index, added 0.1%.
Prior to today's trading, shares of the hospital operator had lost 5.6% over the past month. This has was narrower than the Medical sector's loss of 10.2% and the S&P 500's loss of 12.13% in that time.
The upcoming earnings release of Tenet Healthcare will be of great interest to investors. The company is forecasted to report an EPS of $3.12, showcasing a 3.11% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.17 billion, down 3.66% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.15 per share and revenue of $20.88 billion. These totals would mark changes of +2.27% and +1.06%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Tenet Healthcare. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.37% upward. Tenet Healthcare is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Tenet Healthcare is currently exchanging hands at a Forward P/E ratio of 9.91. This valuation marks a discount compared to its industry's average Forward P/E of 9.94.
Also, we should mention that THC has a PEG ratio of 0.9. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Medical - Hospital industry stood at 1.02 at the close of the market yesterday.
The Medical - Hospital industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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