In the latest trading session, Tenet Healthcare (THC) closed at $161.37, marking a -2.11% move from the previous day. This change lagged the S&P 500's 0.41% gain on the day. On the other hand, the Dow registered a gain of 1.73%, and the technology-centric Nasdaq decreased by 0.09%.
Shares of the hospital operator have depreciated by 15.25% over the course of the past month, underperforming the Medical sector's gain of 0.14%, and the S&P 500's gain of 4.59%.
Market participants will be closely following the financial results of Tenet Healthcare in its upcoming release. The company is forecasted to report an EPS of $4.08, showcasing a 1.49% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $5.39 billion, indicating a 2.27% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $17.61 per share and a revenue of $22.02 billion, signifying shifts of +4.95% and +3.32%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Tenet Healthcare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.6% higher within the past month. Tenet Healthcare currently has a Zacks Rank of #3 (Hold).
Investors should also note Tenet Healthcare's current valuation metrics, including its Forward P/E ratio of 9.36. This signifies no noticeable deviation in comparison to the average Forward P/E of 9.36 for its industry.
Meanwhile, THC's PEG ratio is currently 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Medical - Hospital industry was having an average PEG ratio of 1.09.
The Medical - Hospital industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 48% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Tenet Healthcare Corporation (THC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).