The latest trading session saw Tenet Healthcare (THC) ending at $119.51, denoting a -0.18% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 1.57%. Meanwhile, the Dow experienced a drop of 0.84%, and the technology-dominated Nasdaq saw a decrease of 2.15%.
The hospital operator's stock has dropped by 5.1% in the past month, exceeding the Medical sector's loss of 12.86% and the S&P 500's loss of 12.16%.
The investment community will be closely monitoring the performance of Tenet Healthcare in its forthcoming earnings report. It is anticipated that the company will report an EPS of $3.12, marking a 3.11% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.17 billion, down 3.66% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.15 per share and a revenue of $20.88 billion, signifying shifts of +2.27% and +1.06%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Tenet Healthcare. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.37% increase. At present, Tenet Healthcare boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Tenet Healthcare is currently being traded at a Forward P/E ratio of 9.86. This denotes a premium relative to the industry's average Forward P/E of 9.74.
Investors should also note that THC has a PEG ratio of 0.9 right now. 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 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. With its current Zacks Industry Rank of 24, this industry ranks in the top 10% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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