Core Insights - Tenet Healthcare Corporation reported strong financial results for the third quarter of 2025, with a focus on high acuity service lines and operational discipline leading to revenue growth and free cash flow [3][4][11] - The company raised its financial outlook for the full year 2025, reflecting confidence in continued growth across its markets [4][15] Financial Performance - Net operating revenues for Q3 2025 were $5,289 million, a 3.2% increase from $5,126 million in Q3 2024 [4][39] - Net income available to common shareholders decreased to $342 million, or $3.86 per diluted share, compared to $472 million, or $4.89 per diluted share in Q3 2024 [5][39] - Adjusted EBITDA for Q3 2025 was $1,099 million, up 12.4% from $978 million in Q3 2024, with an adjusted EBITDA margin of 20.8% [4][39] Segment Performance - The Ambulatory Care segment generated net operating revenues of $1,275 million in Q3 2025, up from $1,139 million in Q3 2024, with an adjusted EBITDA of $492 million [9][39] - The Hospital Operations and Services segment reported net operating revenues of $4,014 million in Q3 2025, slightly up from $3,987 million in Q3 2024, with an adjusted EBITDA of $607 million [13][39] Cash Flow and Capital Management - Cash flows from operating activities for the nine months ended September 30, 2025, were $2,809 million, compared to $2,378 million for the same period in 2024 [10][37] - Free cash flow for the nine months ended September 30, 2025, was $2,163 million, an increase from $1,777 million in the prior year [10][37] - The company repurchased 0.6 million shares for $93 million in Q3 2025 and 7.8 million shares for $1,188 million in the nine months ended September 30, 2025 [10][37] 2025 Financial Outlook - The full-year 2025 outlook for net operating revenues is projected to be between $21,150 million and $21,350 million, with adjusted EBITDA expected in the range of $4,470 million to $4,570 million [15][17] - The company anticipates adjusted diluted earnings per share to be between $15.93 and $16.26 for the full year 2025 [15][17]

Core Insights - Tenet Healthcare Corporation (THC) is scheduled to report its third-quarter 2025 results on October 28, 2025, with earnings estimated at $3.33 per share and revenues of $5.24 billion, reflecting year-over-year increases of 13.7% and 2.2% respectively [1][6] Financial Performance - The earnings estimate for the third quarter has remained stable over the past 60 days, indicating a year-over-year increase of 13.7%, while the revenue estimate suggests a growth of 2.2% [2] - For the full year 2025, the revenue estimate stands at $21.16 billion, implying a rise of 2.4% year-over-year, and the earnings per share estimate is $15.82, indicating a significant jump of 33.2% year-over-year [3] Earnings Prediction - The current model does not predict an earnings beat for Tenet Healthcare, as it has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [4] - The consensus estimate for adjusted patient admissions in total hospital operations suggests a 2.7% year-over-year growth, but on a same-hospital basis, there is a projected decrease of 5.7% [5] Segment Performance - The Ambulatory Care segment is expected to show strong performance, with operating revenues estimated to grow by 8.5% year-over-year, while the consensus indicates a 10.7% increase [7] - The Zacks Consensus Estimate for Hospital Operations and Services revenues is pegged at $3.99 billion, reflecting a slight increase of 0.2% from the previous year [8] Operational Challenges - Total hospital patient days are expected to decrease by 4.4% year-over-year, and the average length of stay is projected to decline by 8.8% [9][10] - Increased utilization is anticipated to lead to higher operating costs, contributing to uncertainty regarding an earnings beat [10]

Group 1 - Tenet Healthcare Inc. stock price is currently at $201.81, reflecting a 0.15% decrease in the current market session, but has increased by 4.52% over the past month and 28.04% over the past year [1] - The company's P/E ratio is 12.7, which is significantly lower than the industry average P/E ratio of 17.77 in the Health Care Providers & Services sector [6] - A lower P/E ratio may suggest that shareholders expect the stock to perform worse than its industry peers or that the stock is undervalued [6] Group 2 - The P/E ratio is a critical metric for long-term shareholders to evaluate market performance against historical earnings and industry standards [5] - While a low P/E ratio can indicate undervaluation, it may also reflect weak growth prospects or financial instability [9] - Investors should consider the P/E ratio alongside other financial metrics, industry trends, and qualitative factors for a comprehensive analysis of a company's financial health [9]

Core Insights - Tenet Healthcare Corporation (NYSE: THC) stock is reaching levels near both 52-week and all-time highs, last seen in September 2002, indicating strong market performance over two decades [1] Company Performance - The stock performance of Tenet Healthcare Corporation is highlighted as it approaches significant historical highs, suggesting positive investor sentiment and potential growth opportunities [1] Market Context - The current stock levels reflect a broader trend in the healthcare sector, where companies are experiencing increased investor interest and market activity [1]

Core Insights - Tenet Healthcare Corporation (NYSE: THC) stock is reaching levels near both 52-week and all-time highs, last seen in September 2002, indicating strong market performance over two decades [1] Company Performance - The stock performance of Tenet Healthcare Corporation is highlighted as it approaches significant historical highs, suggesting positive investor sentiment and potential growth opportunities [1]

Core Viewpoint - Tenet Healthcare (THC) has shown strong stock performance recently, with an 8.1% return over the past month, outperforming the S&P 500's 2.7% and the Zacks Medical - Hospital industry's 4.3% [1] Earnings Estimates - Tenet is expected to report earnings of $3.35 per share for the current quarter, reflecting a year-over-year increase of 14.3% [4] - The consensus earnings estimate for the current fiscal year is $15.54, indicating a year-over-year change of 30.8% [4] - For the next fiscal year, the consensus estimate is $15.96, showing a 2.7% increase from the previous year [5] Revenue Growth - The consensus sales estimate for the current quarter is $5.25 billion, representing a year-over-year change of 2.4% [10] - Estimated revenues for the current and next fiscal years are $21.15 billion and $22.14 billion, indicating changes of 2.4% and 4.6%, respectively [10] Recent Performance - In the last reported quarter, Tenet achieved revenues of $5.27 billion, a year-over-year increase of 3.3% [11] - The EPS for the same period was $4.02, compared to $2.31 a year ago, with a revenue surprise of 2.42% and an EPS surprise of 41.55% [11][12] Valuation - Tenet is graded A in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [16] - The evaluation of valuation multiples such as P/E, P/S, and P/CF suggests that Tenet's stock is fairly valued or undervalued relative to its historical values and peers [14][15] Conclusion - The Zacks Rank 2 for Tenet suggests potential outperformance in the near term, supported by strong earnings and revenue growth projections [17]

Group 1 - Tenet Healthcare Inc. stock is currently trading at $194.06, reflecting a 2.06% increase, with a 7.79% rise over the past month and a 16.67% increase over the past year, indicating optimism among long-term shareholders [1] - The price-to-earnings (P/E) ratio is a critical metric for investors, comparing the current share price to the company's earnings per share (EPS), and a higher P/E suggests expectations of better future performance [5] - Tenet Healthcare has a P/E ratio of 11.95, which is lower than the industry average of 17.68 in the Health Care Providers & Services sector, potentially indicating that the stock may be undervalued or expected to perform worse than peers [6] Group 2 - While a low P/E ratio can suggest undervaluation, it may also indicate weak growth prospects or financial instability, emphasizing the need for a comprehensive analysis of financial health [8]

Core Insights - A potential Federal Reserve rate cut, strong retail sales, and progress in U.S.-China trade talks may positively impact the broader stock market, but not all stocks are guaranteed to perform well. Investors are advised to use the Driehaus strategy to identify the best momentum stocks [1] Group 1: Driehaus Strategy Overview - The Driehaus strategy emphasizes investing in stocks that are increasing in price rather than those in decline, focusing on strong earnings growth and positive momentum indicators [3][5] - Key criteria for the Driehaus strategy include a positive percentage 50-day moving average and strong earnings growth rates, with a focus on companies that consistently beat earnings estimates [4][5] Group 2: Selected Momentum Stocks - AppLovin Corporation (APP), Build-A-Bear Workshop, Inc. (BBW), and Tenet Healthcare Corporation (THC) have been identified as momentum picks based on the Driehaus strategy [2][8] - AppLovin has a Momentum Score of B and an average trailing four-quarter earnings surprise of 22.4% [10] - Build-A-Bear Workshop also has a Momentum Score of B, with an average trailing four-quarter earnings surprise of 21.3% [11] - Tenet Healthcare, with a Momentum Score of B, boasts an average trailing four-quarter earnings surprise of 31.2% [12]

Core Viewpoint - Tenet Healthcare is expected to report strong earnings growth in its upcoming earnings report, with a projected EPS of $3.35, reflecting a 14.33% increase year-over-year, and revenue of $5.25 billion, indicating a 2.42% rise from the same quarter last year [2] Group 1: Stock Performance - In the latest trading session, Tenet Healthcare closed at $191.78, down 2.35% from the previous day, underperforming the S&P 500's daily gain of 0.3% [1] - Prior to the recent trading session, Tenet Healthcare shares had gained 15.2%, significantly outperforming the Medical sector's gain of 7.07% and the S&P 500's gain of 2.09% [1] Group 2: Earnings Estimates - For the annual period, Zacks Consensus Estimates project earnings of $15.54 per share and revenue of $21.15 billion, representing increases of 30.81% and 2.36% respectively from the previous year [3] - Recent changes to analyst estimates for Tenet Healthcare are being closely monitored, as positive revisions are seen as a favorable indicator for the business outlook [3] Group 3: Valuation Metrics - Tenet Healthcare currently has a Forward P/E ratio of 12.64, which is higher than the industry average Forward P/E of 10.77 [6] - The company has a PEG ratio of 0.86, compared to the Medical - Hospital industry's average PEG ratio of 1.08, indicating a favorable valuation relative to expected earnings growth [7] Group 4: Industry Ranking - The Medical - Hospital industry, which includes Tenet Healthcare, has a Zacks Industry Rank of 58, placing it in the top 24% of over 250 industries [7] - The Zacks Rank system, which assesses stock performance based on estimate changes, currently ranks Tenet Healthcare as 1 (Strong Buy), reflecting a strong potential for outperformance [5]

Company Overview - Tenet Healthcare operates a network of Ambulatory Surgery Centers (ASCs), acute care hospitals, and a revenue cycle management business [1]. Leadership and Guidance - The company expressed confidence in its business performance and reiterated its earnings guidance for the year, including an increase in EBITDA, free cash flow, and M&A guidance for USPI following Q2 results [4].