Tenet Healthcare Corporation (THC) Hit a 52 Week High, Can the Run Continue?

Group 1: HCA Healthcare, Inc. - HCA Healthcare, Inc. exceeded consensus earnings estimates by 10.66% last quarter, with expected earnings of $21.37 per share on revenue of $69.35 billion for the current fiscal year [1] Group 2: Tenet Healthcare (THC) - Tenet Healthcare's shares have increased by 7.1% over the past month, reaching a new 52-week high of $151, and have gained 92.3% since the beginning of the year [2] - Tenet has consistently outperformed earnings estimates, reporting EPS of $2.31 against a consensus estimate of $1.89 in its last earnings report [3] - For the current fiscal year, Tenet is projected to have earnings of $8.87 per share on revenues of $20.25 billion, reflecting a 27.08% increase in EPS but a -1.46% decrease in revenues [4] - The following fiscal year, Tenet is expected to earn $8.81 per share on $21.12 billion in revenues, indicating a year-over-year change of -0.75% in EPS and a 4.32% increase in revenues [4] - Tenet has a Value Score of A, a Growth Score of C, and a Momentum Score of A, resulting in a VGM Score of A [7] - The stock trades at 16.4X current fiscal year EPS estimates, slightly above the peer industry average of 16.2X, and has a trailing cash flow multiple of 9X compared to the peer group's average of 10.3X [8] - Tenet holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, indicating potential for further gains [9] Group 3: Industry Comparison - The Medical - Hospital industry is performing well, with HCA Healthcare also holding a Zacks Rank of 1 (Strong Buy) and strong value and growth scores [10] - HCA shares have gained 1% over the past month, trading at a forward P/E of 16.09X and a P/CF of 11X, indicating a favorable position within the industry [11]