In the latest trading session, Tenet Healthcare (THC) closed at $275.13, marking a +1.3% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.33%. On the other hand, the Dow registered a gain of 1.08%, and the technology-centric Nasdaq increased by 0.08%.
The stock of hospital operator has risen by 2.19% in the past month, leading the Medical sector's loss of 0.15% and the S&P 500's gain of 1.41%.
The investment community will be paying close attention to the earnings performance of Tenet Healthcare in its upcoming release. The company is slated to reveal its earnings on October 29, 2026. The company is forecasted to report an EPS of $4.59, showcasing a 24.05% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $5.47 billion, up 3.4% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $21.04 per share and revenue of $22.2 billion. These totals would mark changes of +25.39% and +4.18%, respectively, from last year.
Any recent changes to analyst estimates for Tenet Healthcare should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. As of now, Tenet Healthcare holds a Zacks Rank of #3 (Hold).
With respect to valuation, Tenet Healthcare is currently being traded at a Forward P/E ratio of 12.91. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 12.91.
Meanwhile, THC's PEG ratio is currently 1.04. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Hospital industry had an average PEG ratio of 1.15 as trading concluded yesterday.
The Medical - Hospital industry is part of the Medical sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 21% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Tenet Healthcare Corporation (THC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).