Tenet Healthcare Corporation (THC) Soars to 52-Week High, Time to Cash Out?

Core Viewpoint - Tenet Healthcare (THC) has experienced significant stock performance, with a 13.5% increase over the past month and a 74.1% rise since the beginning of the year, outperforming the broader medical sector and hospital industry [1][2]. Financial Performance - Tenet has consistently exceeded earnings expectations, reporting an EPS of $3.22 against a consensus estimate of $1.45 in its last earnings report [2]. - For the current fiscal year, Tenet is projected to achieve earnings of $8.42 per share on revenues of $20.31 billion, reflecting a 20.63% increase in EPS despite a slight revenue decline of -1.16% [3]. - The next fiscal year forecasts an EPS of $8.43 and revenues of $21.06 billion, indicating minimal growth of 0.14% in EPS and a 3.71% increase in revenues year-over-year [3]. Valuation Metrics - Tenet's stock trades at 15.6 times the current fiscal year EPS estimates, matching the peer industry average, while trailing cash flow is at 8.1 times compared to the peer group's average of 9.8 times [7]. - The stock has a PEG ratio of 1.41, which does not place it among the top value stocks [7]. Zacks Rank and Style Scores - Tenet holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, aligning with investment strategies that favor stocks with strong rankings and favorable style scores [8]. - The company has a Value Score of A, a Growth Score of C, and a Momentum Score of F, resulting in a combined VGM Score of B [6].