Tenet Healthcare (THC) closed the most recent trading day at $21.60, moving -1.44% from the previous trading session. This move lagged the S&P 500’s daily gain of 4.94%. Elsewhere, the Dow gained 4.89%, while the tech-heavy Nasdaq added 4.95%.
Coming into today, shares of the hospital operator had lost 34.48% in the past month. In that same time, the Medical sector lost 10.63%, while the S&P 500 lost 17.66%.
Investors will be hoping for strength from THC as it approaches its next earnings release. The company is expected to report EPS of $0.54, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.73 billion, up 4.09% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.94 per share and revenue of $19.26 billion. These totals would mark changes of 9.7% and 4.25%, respectively, from last year.
Any recent changes to analyst estimates for THC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of 25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.05% higher. THC is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, THC currently has a Forward P/E ratio of 7.46. This valuation marks a discount compared to its industry’s average Forward P/E of 9.98.
Meanwhile, THC’s PEG ratio is currently 0.86. 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. The Medical – Hospital industry currently had an average PEG ratio of 0.88 as of yesterday’s close.
The Medical – Hospital industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Click to get this free report
Tenet Healthcare Corporation (THC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research” data-reactid=”31″ type=”text”>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report