Tenet Healthcare Corporation (THC) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Tenet Healthcare (THC)? Shares have been on the move with the stock up 40.4% over the past month. The stock hit a new 52-week high of $262.68 in the previous session. Tenet has gained 32.2% since the start of the year compared to the 2.8% move for the Zacks Medical sector and the 11.4% return for the Zacks Medical - Hospital industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 23, 2026, Tenet reported EPS of $6.12 versus consensus estimate of $4.08.

For the current fiscal year, Tenet is expected to post earnings of $19.07 per share on $22.06 in revenues. This represents a 13.65% change in EPS on a 3.52% change in revenues. For the next fiscal year, the company is expected to earn $18.68 per share on $22.5 in revenues. This represents a year-over-year change of -2.07% and 1.97%, respectively.

Valuation Metrics

Though Tenet has recently hit a 52-week high, what is next for Tenet? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Tenet has a Value Score of A. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 13.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.8X. On a trailing cash flow basis, the stock currently trades at 9.5X versus its peer group's average of 8X. Additionally, the stock has a PEG ratio of 1.1. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Tenet an interesting choice for value investors.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Tenet currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Tenet meets the list of requirements. Thus, it seems as though Tenet shares could still be poised for more gains ahead.

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This article originally published on Zacks Investment Research (zacks.com).

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