For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with 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
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Tenet Healthcare, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in May 2015 would be worth $3,415.27, or a gain of 241.53%, as of May 19, 2025, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 180.69% and the price of gold increased 153.90% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for THC.
Tenet Healthcare's performance 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.
Shares have gained 35.84% over the past four weeks and there have been 8 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tenet Healthcare Corporation (THC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
