Tenet Health(US:THC) ZACKSยท2024-08-01 14:01Core Viewpoint - Tenet Healthcare (THC) has shown strong stock performance recently, with a +10.2% return over the past month, outperforming the S&P 500's +1.1% and the Zacks Medical - Hospital industry's +12.1% [1] Earnings Estimates - Tenet is expected to post earnings of $2.10 per share for the current quarter, reflecting a year-over-year increase of +45.8%, with a 30-day change in the Zacks Consensus Estimate of +41.8% [4] - For the current fiscal year, the consensus earnings estimate is $10.21, indicating a +46.3% change from the prior year, with a 30-day change of +20.6% [4] - The next fiscal year's consensus earnings estimate is $10.24, showing a +0.3% change from the previous year, with a recent change of +16.2% [5] Revenue Growth - The consensus sales estimate for the current quarter is $5.05 billion, indicating a year-over-year change of -0.4% [8] - For the current fiscal year, the sales estimate is $20.76 billion, reflecting a +1% change, while the next fiscal year's estimate is $21.51 billion, indicating a +3.6% change [8] Recent Performance - In the last reported quarter, Tenet achieved revenues of $5.1 billion, a year-over-year increase of +0.4%, and an EPS of $2.31 compared to $1.44 a year ago [9] - The reported revenues exceeded the Zacks Consensus Estimate of $4.98 billion by +2.49%, and the EPS surprise was +22.22% [10] - Tenet has consistently beaten consensus EPS and revenue estimates over the past four quarters [10] Valuation - Tenet is graded A in the Zacks Value Style Score, indicating it is trading at a discount to its peers [14] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued [12][13] Conclusion - The Zacks Rank 1 suggests that Tenet may outperform the broader market in the near term, supported by strong earnings estimate revisions and favorable valuation metrics [15]