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Tenet Healthcare (THC) Stock Falls Amid Market Uptick: What Investors Need to Know

The latest trading session saw Tenet Healthcare (THC) ending at $136.88, denoting a -0.82% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.77%. Elsewhere, the Dow saw an upswing of 0.49%, while the tech-heavy Nasdaq appreciated by 0.95%.

Heading into today, shares of the hospital operator had gained 7.43% over the past month, outpacing the Medical sector's gain of 1.49% and the S&P 500's gain of 3.71% in that time.

The investment community will be closely monitoring the performance of Tenet Healthcare in its forthcoming earnings report. The company is predicted to post an EPS of $1.83, indicating a 27.08% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.98 billion, down 2.03% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.74 per share and a revenue of $20.34 billion, representing changes of +25.21% and -1.04%, respectively, from the prior year.

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It is also important to note the recent changes to analyst estimates for Tenet Healthcare. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 0.31% rise in the Zacks Consensus EPS estimate. Tenet Healthcare is currently a Zacks Rank #1 (Strong Buy).

With respect to valuation, Tenet Healthcare is currently being traded at a Forward P/E ratio of 15.78. This represents a discount compared to its industry's average Forward P/E of 15.96.

One should further note that THC currently holds a PEG ratio of 1.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Medical - Hospital industry stood at 1.48 at the close of the market yesterday.

The Medical - Hospital industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 31, placing it within the top 13% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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Tenet Healthcare Corporation (THC) : Free Stock Analysis Report

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