In the latest trading session, Tenet Healthcare (THC) closed at $234.58, marking a -1.2% move from the previous day. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq added 0.08%.
Prior to today's trading, shares of the hospital operator had gained 22.99% outpaced the Medical sector's loss of 2.21% and the S&P 500's loss of 2.16%.
The investment community will be paying close attention to the earnings performance of Tenet Healthcare in its upcoming release. The company is expected to report EPS of $4.19, down 3.9% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $5.39 billion, indicating a 3.15% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $16.98 per share and revenue of $21.99 billion, indicating changes of +1.19% and +3.17%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Tenet Healthcare. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.84% increase. Tenet Healthcare is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Tenet Healthcare is currently being traded at a Forward P/E ratio of 13.98. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 13.98.
Meanwhile, THC's PEG ratio is currently 1.17. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Hospital was holding an average PEG ratio of 1.17 at yesterday's closing price.
The Medical - Hospital industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 55, finds itself in the top 23% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Tenet Healthcare Corporation (THC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).