Core Insights - The American Association of Orthopaedic Surgeons (AAOS) has launched the AAOS Launchpad Program, supported by Tenet Healthcare and United Surgical Partners International (USPI), to assist PGY5 orthopaedic residents in their transition to practice [1][2][3] Company and Industry Overview - Tenet Healthcare is a diversified healthcare services company with a network that includes United Surgical Partners International, the largest ambulatory platform in the U.S., and operates various healthcare facilities [4] - The AAOS is the largest medical association for musculoskeletal specialists, with over 39,000 members, and is dedicated to advancing musculoskeletal health through education and quality care [5]

Core Viewpoint - The healthcare sector is showing initial signs of recovery after reaching a 30-year high in valuation discount relative to the S&P 500 index [1][2] Group 1: Market Performance - Since reaching a historical high on September 3, 2024, healthcare stocks have been in a "persistent downtrend," underperforming both in absolute terms and relative to the S&P 500 [1] - August is identified as a turning point for the sector, with healthcare stocks beginning to reverse their previous weak performance [1] Group 2: Economic Environment - The recovery is driven by a historically significant valuation gap and an economic backdrop characterized by GDP growth slowing to 1.5% or lower while inflation remains at 3% or higher, which historically favors the healthcare sector [1] - The dual effect of valuation discount and improved sentiment provides strong justification for including healthcare stocks in investment portfolios under the current economic conditions [2] Group 3: Investment Recommendations - Evercore ISI highlights several healthcare stocks with attractive valuations and sentiment, including Cencora (COR.US), BioMarin Pharmaceutical (BMRN.US), Cigna (CI.US), Cardinal Health (CAH.US), Humana (HUM.US), Incyte (INCY.US), LabCorp (LH.US), Pfizer (PFE.US), Quest Diagnostics (DGX.US), Teleflex (TFX.US), Tenet Healthcare (THC.US), Universal Health Services (UHS.US), and Viatris (VTRS.US) [2]

Group 1 - The healthcare sector is showing initial signs of recovery after reaching a 30-year high in valuation discount relative to the S&P 500 index [1][2] - Healthcare stocks have been in a "persistent downtrend" since reaching historical highs on September 3, 2024, missing out on market rebounds [1] - The recovery is driven by a historical valuation gap and a macroeconomic environment characterized by GDP growth slowing to 1.5% or lower while inflation remains at 3% or higher, which historically favors healthcare sector performance [1] Group 2 - The current price-to-earnings ratio of the overall market is 25.5 times, while healthcare stocks still present attractive investment options [2] - The potential recovery of healthcare stocks is described as part of "the fastest bear market rebound in history," indicating a larger bull market may extend until 2026 [2] - Evercore ISI recommends healthcare stocks with both valuation and sentiment appeal, including Cencora, BioMarin Pharmaceutical, Cigna, Cardinal Health, Humana, Incyte, Labcorp, Pfizer, Quest Diagnostics, Teleflex, Tenet Healthcare, Universal Health Services, and Viatris [2]

Company Overview - Arcutis Biotherapeutics, Inc. (ARQT) is part of the Medical group, which consists of 979 companies and is currently ranked 8 in the Zacks Sector Rank [2] - The company is categorized under the Medical - Biomedical and Genetics industry, which includes 489 stocks and is ranked 147 in the Zacks Industry Rank [6] Performance Metrics - Year-to-date, Arcutis Biotherapeutics has gained approximately 6%, while the average return for Medical companies is -7.4%, indicating that ARQT is outperforming its peers [4] - The Zacks Consensus Estimate for ARQT's full-year earnings has increased by 25.7% over the past quarter, reflecting improved analyst sentiment and a stronger earnings outlook [4] Zacks Rank - Arcutis Biotherapeutics currently holds a Zacks Rank of 2 (Buy), which emphasizes its potential for improving earnings outlooks [3] - In comparison, another Medical stock, Tenet Healthcare (THC), has a Zacks Rank of 1 (Strong Buy) and has returned 31.2% year-to-date [5]

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]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements, management's discussion and analysis, and market risk disclosures [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, with accompanying notes [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section provides key financial statements, including balance sheets, statements of operations, and cash flows for the specified periods Condensed Consolidated Balance Sheets (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 ($M) | December 31, 2024 ($M) | | :-------------------------------- | :------------------- | :--------------------- | | Total Assets | 28,699 | 28,936 | | Total Liabilities | 20,397 | 20,389 | | Total Equity | 5,476 | 5,820 | | Cash and Cash Equivalents | 2,625 | 3,019 | | Goodwill | 10,935 | 10,691 | | Long-term debt, net of current portion | 13,091 | 13,081 | Condensed Consolidated Statements of Operations (Three Months Ended June 30, 2025 vs. 2024) | Metric | 3 Months Ended June 30, 2025 ($M) | 3 Months Ended June 30, 2024 ($M) | Change ($M) | Change (%) | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :---------- | :--------- | | Net operating revenues | 5,271 | 5,108 | 163 | 3.19% | | Operating income | 823 | 761 | 62 | 8.15% | | Net income | 522 | 477 | 45 | 9.43% | | Net income available to common shareholders | 288 | 259 | 29 | 11.20% | | Diluted EPS | 3.14 | 2.64 | 0.50 | 18.94% | Condensed Consolidated Statements of Operations (Six Months Ended June 30, 2025 vs. 2024) | Metric | 6 Months Ended June 30, 2025 ($M) | 6 Months Ended June 30, 2024 ($M) | Change ($M) | Change (%) | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :---------- | :--------- | | Net operating revenues | 10,494 | 10,476 | 18 | 0.17% | | Operating income | 1,766 | 4,046 | (2,280) | (56.35)% | | Net income | 1,144 | 2,811 | (1,667) | (59.30)% | | Net income available to common shareholders | 694 | 2,410 | (1,716) | (71.20)% | | Diluted EPS | 7.43 | 24.22 | (16.79) | (69.32)% | Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30, 2025 vs. 2024) | Metric | 6 Months Ended June 30, 2025 ($M) | 6 Months Ended June 30, 2024 ($M) | Change ($M) | Change (%) | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :---------- | :--------- | | Net cash provided by operating activities | 1,751 | 1,333 | 418 | 31.36% | | Net cash provided by (used in) investing activities | (501) | 3,134 | (3,635) | (116.00)% | | Net cash used in financing activities | (1,644) | (2,815) | 1,171 | 41.60% | | Net increase (decrease) in cash and cash equivalents | (394) | 1,652 | (2,046) | (123.85)% | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and supplementary information for the condensed consolidated financial statements [NOTE 1. BASIS OF PRESENTATION](index=10&type=section&id=NOTE%201.%20BASIS%20OF%20PRESENTATION) This note describes Tenet's diversified healthcare services business segments and the basis for financial statement preparation - Tenet is a diversified healthcare services company with Hospital Operations (**49 acute care/specialty hospitals**, **134 outpatient facilities**) and Ambulatory Care (**521 ambulatory surgery centers**, **26 surgical hospitals** via USPI) segments, also operating a Global Business Center (GBC) in the Philippines[20](index=20&type=chunk) Cash and Cash Equivalents | Date | Amount ($M) | | :--------------- | :---------- | | June 30, 2025 | 2,625 | | December 31, 2024 | 3,019 | * **Change:** Decreased by **$394 million** (13.05%) from December 31, 2024 Goodwill Changes (Six Months Ended June 30, 2025 vs. 2024) | Segment | 2025 ($M) | 2024 ($M) | | :------------------ | :-------- | :-------- | | Hospital Operations | 2,697 | 2,869 | | Ambulatory Care | 8,238 | 7,930 | | **Total Goodwill** | **10,935** | **10,799** | - Total other intangible assets, net, decreased to **$1,372 million** at June 30, 2025, from **$1,397 million** at December 31, 2024. Amortization expense for finite-lived intangible assets was **$79 million** for the six months ended June 30, 2025, down from **$89 million** in the prior year period[31](index=31&type=chunk) [NOTE 2. ACCOUNTS RECEIVABLE](index=14&type=section&id=NOTE%202.%20ACCOUNTS%20RECEIVABLE) This note details accounts receivable components, primarily patient accounts, and estimated costs for uninsured and charity patients Accounts Receivable Composition (June 30, 2025 vs. December 31, 2024) | Component | June 30, 2025 ($M) | December 31, 2024 ($M) | | :------------------------------------------ | :------------------- | :--------------------- | | Patient accounts receivable | 2,377 | 2,386 | | Estimated future recoveries | 151 | 144 | | Cost report settlements receivable, net | 5 | 6 | | **Accounts receivable, net** | **2,533** | **2,536** | Estimated Costs for Uninsured and Charity Patients (Six Months Ended June 30, 2025 vs. 2024) | Patient Type | 6 Months Ended June 30, 2025 ($M) | 6 Months Ended June 30, 2024 ($M) | Change ($M) | Change (%) | | :----------------- | :-------------------------------- | :-------------------------------- | :---------- | :--------- | | Uninsured patients | 218 | 271 | (53) | (19.56)% | | Charity care patients | 59 | 46 | 13 | 28.26% | | **Total** | **277** | **317** | **(40)** | **(12.62)%** | [NOTE 3. DISPOSITION OF ASSETS AND LIABILITIES](index=16&type=section&id=NOTE%203.%20DISPOSITION%20OF%20ASSETS%20AND%20LIABILITIES) This note details significant asset dispositions completed in 2024, including hospital sales, which resulted in substantial pre-tax gains - In January 2024, the company completed the sale of three South Carolina hospitals, recognizing a pre-tax gain of **$1.677 billion** in the six months ended June 30, 2024[38](index=38&type=chunk) - In March 2024, the company sold four hospitals in Orange County and Los Angeles County, California, for a pre-tax gain of **$526 million**, and two hospitals in San Luis Obispo County, California, for a pre-tax gain of **$275 million**[44](index=44&type=chunk) - In March 2024, the company also sold three ambulatory surgery centers in South Carolina, resulting in a pre-tax gain of **$43 million**[44](index=44&type=chunk) [NOTE 4. IMPAIRMENT AND RESTRUCTURING CHARGES, AND ACQUISITION‑RELATED COSTS](index=16&type=section&id=NOTE%204.%20IMPAIRMENT%20AND%20RESTRUCTURING%20CHARGES%2C%20AND%20ACQUISITION%E2%80%91RELATED%20COSTS) This note outlines impairment, restructuring, and acquisition-related costs for the six-month periods ended June 30, 2025 and 2024 Impairment and Restructuring Charges, and Acquisition-Related Costs (Six Months Ended June 30, 2025 vs. 2024) | Charge Type | 6 Months Ended June 30, 2025 ($M) | 6 Months Ended June 30, 2024 ($M) | Change ($M) | Change (%) | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | :---------- | :--------- |

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].