Tenet Healthcare Corporation THC is well-poised to grow, backed by the expanding adjusted admissions. Its solid Ambulatory Care segment performance is also a major tailwind. In the year-to-date period, shares of Tenet Healthcare have gained 2.6% against the industry’s 5.5% fall. Headquartered in Dallas, TX, THC operates as a provider of diversified healthcare services and has a market cap of $17.5 billion.
Driven by its solid prospects, this Zacks Rank #2 (Buy) stock is worth adding to your portfolio at the moment.
Let’s delve deeper.
The Zacks Consensus Estimate for Tenet Healthcare’s current-year earnings is pegged at $17.61 per share, which has witnessed two upward estimate revisions in the past 60 days against none in the opposite direction. The estimate indicates 5% year-over-year growth. Tenet Healthcare beat on earnings in all the last four quarters, with an average surprise of 20.6%.
Tenet Healthcare Corporation Price, Consensus and EPS Surprise
Tenet Healthcare Corporation price-consensus-eps-surprise-chart | Tenet Healthcare Corporation Quote
The consensus mark for current-year revenues is pegged at $22.02 billion, signaling a 3.3% increase from a year ago. The company’s solid organic growth, supported by rising patient revenue per adjusted admission and a favorable shift toward higher-acuity services, is likely to support the top line. Favorable demographic trends, such as an aging population and rising chronic disease prevalence, are expected to sustain volume growth and support long-term revenue and earnings expansion.
THC's performance is benefiting from strong growth in its Ambulatory Care segment, driven by same-facility revenue gains, tuck-in acquisitions of ambulatory surgery centers and surgical hospitals, and continued expansion of the USPI platform. It had interests in 541 ambulatory surgery centers and 26 surgical hospitals in 37 states as of March 31, 2026. Ambulatory net operating revenues increased 17.3% in 2024, 14.1% in 2025 and 10.6% year over year in the first quarter of 2026.
THC's return on assets of 5.15% is higher than the industry average of 4.24%, indicating that the company is generating superior returns from its asset base, reflecting stronger operational efficiency and effective capital deployment compared with its peers.
Key Risk to Monitor
However, investors should keep an eye on the company's expense profile. While Tenet Healthcare has implemented cost-control initiatives, including workforce optimization and renegotiated supplier and vendor contracts, expenses have continued to rise. Operating expenses increased 20.6% in 2025 and a further 4.6% year over year in the first quarter of 2026. Total expenses also rose as a percentage of sales. Persistent labor cost pressures, inflation in medical supplies and other inputs, and higher patient acuity are expected to keep expenses elevated, potentially weighing on margins.
Other Key Picks
Some other top-ranked stocks in the broader Medical space are CVS Health Corporation CVS, agilon health, inc. AGL and Biodesix, Inc. BDSX, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CVS Health’s 2026 bottom line suggests 10.2% year-over-year growth. CVS has witnessed 12 upward estimate revisions over the past 60 days against no movement in the opposite direction. It beat earnings estimates in all the last four quarters, with an average surprise of 16.8%.
The Zacks Consensus Estimate for agilon health’s full-year 2026 earnings indicates a 92.4% year-over-year improvement. AGL has witnessed two upward estimate revisions over the past 60 days against no movement in the opposite direction. The consensus mark for current-year revenues is currently pegged at $5.72 billion.
The Zacks Consensus Estimate for Biodesix’s 2026 full-year earnings implies a 37.7% improvement from the year-ago reported figure. BDSX beat earnings estimates in three of the last four quarters and missed once, with an average surprise of 25.6%. The consensus mark for its current-year revenues is pegged at $110.95 million, which indicates a 25.4% year-over-year increase.
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Tenet Healthcare Corporation (THC): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).