The most recent trading session ended with Tenet Healthcare (THC – Free Report) standing at $130.21, reflecting a +1.09% shift from the previouse trading day’s closing. The stock outpaced the S&P 500’s daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq decreased by 0.06%.
Shares of the hospital operator witnessed a loss of 7.4% over the previous month, trailing the performance of the Medical sector with its loss of 5.77% and the S&P 500’s loss of 2.8%.
Market participants will be closely following the financial results of Tenet Healthcare in its upcoming release. On that day, Tenet Healthcare is projected to report earnings of $2.93 per share, which would represent year-over-year growth of 9.33%. Alongside, our most recent consensus estimate is anticipating revenue of $5.16 billion, indicating a 4.03% downward movement from the same quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Tenet Healthcare. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.63% lower within the past month. Tenet Healthcare presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Tenet Healthcare is presently trading at a Forward P/E ratio of 11.38. For comparison, its industry has an average Forward P/E of 11.91, which means Tenet Healthcare is trading at a discount to the group.
One should further note that THC currently holds a PEG ratio of 0.58. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. THC’s industry had an average PEG ratio of 0.82 as of yesterday’s close.
The Medical – Hospital industry is part of the Medical sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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