In the latest close session, Tenet Healthcare (THC) was up +1.83% at $258.62. The stock outpaced the S&P 500’s daily gain of 0.73%. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 1.19%.
Shares of the hospital operator have depreciated by 3.61% over the course of the past month, outperforming the Medical sector’s loss of 3.74%, and lagging the S&P 500’s gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Tenet Healthcare in its upcoming earnings disclosure. The company’s upcoming EPS is projected at $4.59, signifying a 24.05% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.47 billion, up 3.4% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $21.04 per share and revenue of $22.2 billion, indicating changes of +25.39% and +4.18%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Tenet Healthcare. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Tenet Healthcare is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Tenet Healthcare is at present trading with a Forward P/E ratio of 12.07. This expresses no noticeable deviation compared to the average Forward P/E of 12.07 of its industry.
It’s also important to note that THC currently trades at a PEG ratio of 0.97. 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 1.08 as trading concluded yesterday.
The Medical – Hospital industry is part of the Medical sector. With its current Zacks Industry Rank of 62, this industry ranks in the top 26% of all industries, numbering over 250.
