Tenet Healthcare (THC) closed the most recent trading day at $67.73, moving +0.59% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.23%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the hospital operator had lost 8.85% over the past month. This has lagged the Medical sector's loss of 5.3% and the S&P 500's loss of 1.43% in that time.
Investors will be hoping for strength from Tenet Healthcare as it approaches its next earnings release. In that report, analysts expect Tenet Healthcare to post earnings of $1.18 per share. This would mark a year-over-year decline of 18.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.02 billion, up 4.53% from the year-ago period.
THC's full-year Zacks Consensus Estimates are calling for earnings of $5.73 per share and revenue of $20.29 billion. These results would represent year-over-year changes of -15.74% and +5.83%, respectively.
Investors should also note any recent changes to analyst estimates for Tenet Healthcare. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. Tenet Healthcare is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Tenet Healthcare's current valuation metrics, including its Forward P/E ratio of 11.75. For comparison, its industry has an average Forward P/E of 13.03, which means Tenet Healthcare is trading at a discount to the group.
Also, we should mention that THC has a PEG ratio of 1.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Hospital was holding an average PEG ratio of 1.55 at yesterday's closing price.
The Medical - Hospital industry is part of the Medical sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% 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.
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