Market Overview - The broader indexes have experienced a cooling off after a strong performance in July, with concerns over trade wars and a weaker-than-expected Jobs Report contributing to a pullback [1] - The S&P 500 and Nasdaq have risen over +10% in the last three months, prompting investors to consider defensive positions [2] CVS Health - CVS Health is undergoing a transformation into an innovative pharmacy company, resulting in strong earnings and raised guidance, leading to a stock surge of over +30% this year [3] - CVS stock trades at 10X forward earnings and offers a 4.28% annual dividend yield, indicating strong value [3] - The stock holds a Zacks Rank 2 (Buy) and an overall "A" VGM Zacks Style Scores grade for Value, Growth, and Momentum [4] Johnson & Johnson - Johnson & Johnson is recognized for its reasonable 15.1X forward earnings multiple and a 3.16% annual dividend yield, making it an attractive investment [5] - The company has shown steady growth despite a slowdown, with a diversified business model covering various medical fields [6] - Johnson & Johnson stock is up +15% in 2025, outperforming the S&P 500 and Nasdaq [5] Tenet Healthcare - Tenet Healthcare is rated Zacks Rank 1 (Strong Buy) and is experiencing positive earnings estimate revisions, with expected annual earnings growth of 25% in fiscal 2025 [7][8] - The stock is up +25% year-to-date and trades at 10X forward earnings, indicating strong market performance [8] - FY26 EPS is projected to expand by another 4%, with estimates having increased by 14% in the last 60 days [9]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-Q TENET HEALTHCARE CORPORATION (Exact name of Registrant as specified in its charter) Nevada (State of Incorporation) 95-2557091 (IRS Employer Identification No.) ý Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2025 OR ¨ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ ...

Core Viewpoint - Tenet Healthcare (THC) has experienced a significant decline of 14% over the past four weeks, but it is now in oversold territory, indicating a potential trend reversal supported by analyst consensus for better-than-expected earnings [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - THC's current RSI reading is 28.5, suggesting that the heavy selling pressure may be exhausting itself, leading to a potential reversal towards the previous equilibrium of supply and demand [5]. Group 2: Fundamental Analysis - Over the last 30 days, the consensus EPS estimate for THC has increased by 25.3%, indicating a strong agreement among analysts regarding improved earnings for the current year [7]. - An upward trend in earnings estimate revisions is generally associated with price appreciation in the near term, further supporting the potential for a rebound in THC's stock price [7]. Group 3: Analyst Ratings - THC holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which is a strong indicator of the stock's potential for a turnaround [8].

Group 1: Edenred SE (EDNMY) - Edenred is a digital platform for services and payments for companies, employees, and merchants [1] - The company has a Zacks Rank of 1 and a Value Score of B [1] - The Zacks Consensus Estimate for its current year earnings has increased by 2.9% over the last 60 days [1] - Edenred has a price-to-earnings ratio (P/E) of 11.12, significantly lower than the industry average of 32.80 [1] Group 2: Tenet Healthcare Corporation (THC) - Tenet Healthcare is a diversified healthcare services company [2] - The company holds a Zacks Rank of 1 and a Value Score of A [2] - The Zacks Consensus Estimate for its current year earnings has increased nearly 3% over the last 60 days [2] - Tenet Healthcare has a price-to-earnings ratio (P/E) of 12.11, compared to 23.85 for the S&P 500 [2] Group 3: Mercantile Bank Corporation (MBWM) - Mercantile Bank is a bank holding company for Mercantile Bank of Michigan [3] - The company carries a Zacks Rank of 1 and a Value Score of B [3] - The Zacks Consensus Estimate for its current year earnings has increased by 2.9% over the last 60 days [3] - Mercantile Bank has a price-to-earnings ratio (P/E) of 9.81, which is lower than the S&P 500 average of 23.85 [3]

Investors in Tenet Healthcare Corporation (THC) need to pay close attention to the stock based on moves in the options market lately. That is because the Aug 15, 2025 $60 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It co ...

Core Viewpoint - Tenet Healthcare Corporation reported better-than-expected earnings for the second quarter, with significant increases in both earnings per share and sales compared to analyst estimates [1][2]. Financial Performance - The company reported quarterly earnings of $4.02 per share, surpassing the analyst consensus estimate of $2.87 per share [1]. - Quarterly sales reached $5.271 billion, exceeding the analyst consensus estimate of $5.161 billion [1]. Guidance Update - Tenet raised its FY2025 adjusted EPS guidance from a range of $11.99-$13.12 to $15.55-$16.21 [2]. - The sales guidance was also increased from $20.600 billion-$21.000 billion to $20.950 billion-$21.250 billion [2]. Management Commentary - The CEO highlighted strong second quarter results, emphasizing same-store revenue growth, operational performance, and robust free cash flow generation [3]. - The company is focused on both organic and inorganic investments to enhance capabilities and innovate for better patient service [3]. Stock Performance - Following the earnings announcement, Tenet Healthcare shares rose by 1% to trade at $157.49 [3]. Analyst Ratings - Guggenheim analyst Jason Cassorla maintained a Buy rating on Tenet Healthcare and raised the price target from $180 to $188 [6]. - Raymond James analyst John Ransom reiterated an Outperform rating and increased the price target from $185 to $200 [6].

Group 1 - The healthcare sector is experiencing significant downturns in 2025, primarily due to impending large Medicaid cuts [1] - Tenet Healthcare (NYSE: THC) is identified as one of the few positive performers within the struggling healthcare sector [1] Group 2 - The article emphasizes the importance of finding underappreciated companies that can deliver value to investors, aligning with a contrarian investment philosophy [1]

Core Insights - Tenet Healthcare reported strong Q2 2025 earnings, with adjusted EPS of $4.02, significantly exceeding Wall Street expectations of $2.87, and revenue of $5.27 billion, surpassing GAAP forecasts of $5.16 billion [1][5][10] Financial Performance - Adjusted EPS increased by 74% year-over-year from $2.31 to $4.02 [2] - Revenue grew by 3.2% from $5.11 billion in Q2 2024 to $5.27 billion in Q2 2025 [2] - Adjusted EBITDA rose 18.6% to $1.12 billion compared to $945 million in Q2 2024 [2] - Free cash flow reached $743 million, a 23.4% increase from $602 million in Q2 2024 [2][8] Segment Performance - Ambulatory Care segment saw net operating revenue increase by 11.3% to $1.27 billion, with adjusted EBITDA rising 11.4% [6] - Hospital Operations revenue grew modestly by 0.9% to $4.00 billion, with adjusted EBITDA up 25% [7] - Same-hospital admissions increased by 1.6%, while outpatient visits and emergency room visits declined by 3.2% and 4.7%, respectively [7] Strategic Focus - Tenet Healthcare is focused on optimizing its portfolio for growth and profitability, emphasizing the expansion of its outpatient services through United Surgical Partners International (USPI) [3][4] - The company is divesting underperforming hospitals and shifting care to outpatient settings, which are seen as more cost-effective [4] Future Guidance - The company raised its full-year FY2025 guidance, projecting adjusted EBITDA between $4.40 and $4.54 billion and adjusted EPS between $15.55 and $16.21 [10] - Revenue is expected to reach between $20.95 and $21.25 billion, with ambulatory net operating revenues projected between $5.0 and $5.15 billion [10]

Core Insights - Tenet Healthcare Corporation (THC) reported strong second-quarter 2025 results with adjusted earnings per share (EPS) of $4.02, exceeding estimates by 41.6% and showing a year-over-year increase of 74% [1][10] - Net operating revenues rose 3.2% year over year to $5.3 billion, surpassing consensus estimates by 2.4% [1][10] Financial Performance - Adjusted net income for the quarter was $369 million, a 63.3% increase year over year [3] - Adjusted EBITDA improved 18.6% year over year to $1.1 billion, exceeding estimates [3] - Adjusted EBITDA margin increased by 280 basis points to 21.3% [3] Segment Performance - Hospital Operations and Services segment generated net operating revenues of $4 billion, a 0.9% year-over-year increase, beating estimates [5] - Ambulatory Care segment saw net operating revenues rise 11.3% year over year to $1.3 billion, also exceeding estimates [7] Cost and Expenses - Total operating costs increased 2.3% year over year to $4.5 billion, primarily due to higher supplies expenses [4] Cash Flow and Financial Position - Cash and cash equivalents stood at $2.6 billion, down 13.1% from the end of 2024 [9] - Net cash from operations for the first half of 2025 was $1.8 billion, a 31.4% increase year over year [12] Share Repurchase and Guidance - THC repurchased shares worth $747 million in Q2 2025 and increased the share repurchase program by $1.5 billion [13] - The company raised its 2025 adjusted EPS guidance to $15.55-$16.21, indicating a 33.7% rise from the previous year [18]

Tenet Healthcare (THC) Q2 2025 Earnings Call July 22, 2025 10:00 AM ET Company ParticipantsWilliam McDowell - VP - IRSaum Sutaria - Chairman & CEOSun Park - EVP & CFOA.J. Rice - Managing DirectorJoshua Raskin - Partner - Managed Care & ProvidersAndrew Mok - DirectorBen Hendrix - Vice PresidentWhit Mayo - Senior Managing DirectorBenjamin Rossi - Equity Research AssociateJohn Ransom - MD & Director - Healthcare ResearchConference Call ParticipantsMatthew Gillmor - Director & Equity Research AnalystJustin Lake ...