Tenet Healthcare (THC) ended the recent trading session at $192.85, demonstrating a +2.56% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.84%. Meanwhile, the Dow experienced a drop of 0.34%, and the technology-dominated Nasdaq saw a decrease of 1.43%.
Heading into today, shares of the hospital operator had lost 9.17% over the past month, lagging the Medical sector's gain of 0.16% and the S&P 500's gain of 1.8%.
Analysts and investors alike will be keeping a close eye on the performance of Tenet Healthcare in its upcoming earnings disclosure. The company's earnings report is set to go public on February 11, 2026. The company's upcoming EPS is projected at $4.05, signifying a 17.73% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.45 billion, up 7.44% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $16.12 per share and revenue of $21.26 billion, which would represent changes of +35.69% and 0%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Tenet Healthcare. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.31% decrease. Tenet Healthcare presently features a Zacks Rank of #4 (Sell).
From a valuation perspective, Tenet Healthcare is currently exchanging hands at a Forward P/E ratio of 11.35. This signifies a premium in comparison to the average Forward P/E of 8.58 for its industry.
We can also see that THC currently has a PEG ratio of 0.8. 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. The Medical - Hospital industry had an average PEG ratio of 0.8 as trading concluded yesterday.
The Medical - Hospital industry is part of the Medical sector. With its current Zacks Industry Rank of 214, this industry ranks in the bottom 13% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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