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.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and 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
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Tenet Healthcare ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in May 2015 would be worth $3,047.19, or a gain of 204.72%, as of May 2, 2025, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 165.81% and gold's return of 163.05% over the same time frame.
Analysts are anticipating more upside for THC.
Tenet Healthcare beat1Q25 earnings estimates on strong Ambulatory Careunit. Itsrevenue growth is fueled by increasing revenues per adjusted admissions, while its strategy of acquisitions and alliances expands the scale of its business through inorganic growth. The company has been undertaking divestitures to eliminate unprofitable businesses and focus on allocating capital to high return- investments. Adjusted EPS is now anticipated to be within $11.99-$13.12 in 2025, a 5.7% rise from the 2024 figure. Its shares have outperformed the industry in the past year. However, rising expenses might put pressure on its margins in the future. Interest expense for 2025 is estimated to be within $795-$805 million. Revenues from hospital segment is expected to decline in 2025. Low ROIC also poses a concern. As such, the stock warrants a cautious stance.
The stock is up 9.36% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2025. 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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