Diversify Advisory Services LLC grew its holdings in Tenet Healthcare Corporation (NYSE:THC – Free Report) by 35.7% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 13,617 shares of the company’s stock after acquiring an additional 3,584 shares during the period. Diversify Advisory Services LLC’s holdings in Tenet Healthcare were worth $3,746,000 as of its most recent SEC filing.
Several other institutional investors and hedge funds have also modified their holdings of the business. Talon Private Wealth LLC grew its stake in shares of Tenet Healthcare by 35.4% during the second quarter. Talon Private Wealth LLC now owns 23,097 shares of the company’s stock valued at $4,321,000 after buying an additional 6,044 shares during the last quarter. CX Institutional purchased a new position in shares of Tenet Healthcare during the third quarter valued at $6,415,000. Public Employees Retirement System of Ohio bought a new stake in shares of Tenet Healthcare in the second quarter valued at about $10,144,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Tenet Healthcare in the second quarter worth about $5,504,000. Finally, Louisiana State Employees Retirement System purchased a new stake in Tenet Healthcare in the first quarter worth about $4,812,000. Hedge funds and other institutional investors own 95.44% of the company’s stock.
Insider Buying and Selling In related news, Director Richard J. Mark sold 10,000 shares of the business’s stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $263.42, for a total transaction of $2,634,200.00. Following the completion of the sale, the director directly owned 25,121 shares in the company, valued at approximately $6,617,373.82. The trade was a 28.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Nadja West sold 1,152 shares of the stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $258.80, for a total transaction of $298,137.60. Following the completion of the sale, the director owned 23,653 shares of the company’s stock, valued at $6,121,396.40. This trade represents a 4.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 131,199 shares of company stock worth $35,065,587 in the last 90 days. 0.97% of the stock is owned by insiders.
Tenet Healthcare Price Performance NYSE:THC opened at $271.32 on Friday. The firm’s fifty day moving average is $264.86 and its two-hundred day moving average is $221.58. The firm has a market cap of $21.85 billion, a price-to-earnings ratio of 10.46, a PEG ratio of 1.03 and a beta of 1.20. The company has a debt-to-equity ratio of 2.00, a quick ratio of 1.35 and a current ratio of 1.41. Tenet Healthcare Corporation has a one year low of $157.58 and a one year high of $283.05. Tenet Healthcare (NYSE:THC – Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The company reported $6.12 EPS for the quarter, topping analysts’ consensus estimates of $4.26 by $1.86. The business had revenue of $6.04 billion for the quarter, compared to analysts’ expectations of $5.43 billion. Tenet Healthcare had a net margin of 10.27% and a return on equity of 26.76%. The business’s revenue was up 6.8% on a year-over-year basis. During the same quarter last year, the company earned $4.02 EPS. Research analysts expect that Tenet Healthcare Corporation will post 21.04 EPS for the current year.
Analyst Upgrades and Downgrades A number of analysts have recently weighed in on THC shares. Royal Bank Of Canada raised their price target on shares of Tenet Healthcare from $236.00 to $283.00 and gave the company an “outperform” rating in a report on Monday, July 27th. Weiss Ratings upgraded shares of Tenet Healthcare from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Zacks Research cut shares of Tenet Healthcare from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, September 29th. The Goldman Sachs Group reissued a “buy” rating and set a $305.00 target price on shares of Tenet Healthcare in a research report on Tuesday, July 28th. Finally, Wells Fargo & Company raised their target price on shares of Tenet Healthcare from $231.00 to $281.00 and gave the company an “overweight” rating in a research note on Monday, August 3rd. Eighteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $278.45.
View Our Latest Stock Analysis on Tenet Healthcare
Tenet Healthcare Profile (Free Report)
Tenet Healthcare Corp. (NYSE: THC) is a diversified healthcare services company headquartered in Dallas, Texas. Through its hospital operations and outpatient platforms, the company provides a range of medical services to patients across the United States.
Tenet operates acute care and specialty hospitals, ambulatory surgery centers, imaging facilities and other outpatient care sites. Its United Surgical Partners International subsidiary is a major provider of ambulatory surgery services and partners with physicians and health systems.
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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Tenet Healthcare (THC - Free Report) , which belongs to the Zacks Medical - Hospital industry, could be a great candidate to consider.
This hospital operator has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 32.24%.
For the most recent quarter, Tenet was expected to post earnings of $4.08 per share, but it reported $6.12 per share instead, representing a surprise of 50.00%. For the previous quarter, the consensus estimate was $4.21 per share, while it actually produced $4.82 per share, a surprise of 14.49%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Tenet lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Tenet has an Earnings ESP of +11.11% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on October 29, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
The market expects Tenet Healthcare (THC - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on October 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis hospital operator is expected to post quarterly earnings of $4.60 per share in its upcoming report, which represents a year-over-year change of +24.3%.
Revenues are expected to be $5.47 billion, up 3.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.12% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Tenet?For Tenet, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +11.11%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Tenet will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Tenet would post earnings of $4.08 per share when it actually produced earnings of $6.12, delivering a surprise of +50.00%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Tenet appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsTenet Healthcare (THC - Free Report) , another stock in the Zacks Medical - Hospital industry, is expected to report earnings per share of $4.6 for the quarter ended September 2026. This estimate points to a year-over-year change of +24.3%. Revenues for the quarter are expected to be $5.47 billion, up 3.5% from the year-ago quarter.
The consensus EPS estimate for Tenet has been revised 0.1% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +11.11%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Tenet will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Tenet Healthcare is rated Buy, driven by robust Q2 results, margin expansion, and attractive valuation at 12.7x forward EPS. Hospital segment EBITDA margin surged to 18%, with adjusted EBITDA up 22.3% and EPS up 52.2%, supporting raised 2026 guidance. USPI remains a key growth lever, delivering a 39% EBITDA margin, though same-center surgical volumes declined; future upside depends on volume recovery.
In the latest trading session, Tenet Healthcare (THC - Free Report) closed at $269.13, marking a -1.17% move from the previous day. This change lagged the S&P 500's 0.58% gain on the day. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 1.05%.
Coming into today, shares of the hospital operator had gained 3.92% in the past month. In that same time, the Medical sector gained 3.5%, while the S&P 500 gained 0.97%.
The investment community will be closely monitoring the performance of Tenet Healthcare in its forthcoming earnings report. The company is scheduled to release its earnings on October 29, 2026. The company is predicted to post an EPS of $4.59, indicating a 24.05% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $5.47 billion, reflecting a 3.34% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $21.04 per share and a revenue of $22.2 billion, representing changes of +25.39% and +4.18%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Tenet Healthcare. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. Tenet Healthcare is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Tenet Healthcare is currently exchanging hands at a Forward P/E ratio of 12.95. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 12.95.
One should further note that THC currently holds a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Hospital stocks are, on average, holding a PEG ratio of 1.15 based on yesterday's closing prices.
The Medical - Hospital industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 197, positioning it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Tenet Healthcare (THC - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this hospital operator have returned +3.9%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Medical - Hospital industry, which Tenet falls in, has gained 1.6%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Tenet is expected to post earnings of $4.59 per share for the current quarter, representing a year-over-year change of +24.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
The consensus earnings estimate of $21.04 for the current fiscal year indicates a year-over-year change of +25.4%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $20.81 indicates a change of -1.1% from what Tenet is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Tenet.
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Tenet, the consensus sales estimate for the current quarter of $5.47 billion indicates a year-over-year change of +3.3%. For the current and next fiscal years, $22.2 billion and $22.58 billion estimates indicate +4.2% and +1.7% changes, respectively.
Last Reported Results and Surprise HistoryTenet reported revenues of $5.63 billion in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $6.12 for the same period compares with $4.02 a year ago.
Compared to the Zacks Consensus Estimate of $5.39 billion, the reported revenues represent a surprise of +4.4%. The EPS surprise was +50%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Tenet is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Tenet. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
CWA Asset Management Group LLC grew its stake in shares of Tenet Healthcare Corporation (NYSE: THC) by 8.8% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 26,209 shares of the company's stock after acquiring an additional 2,114 shares
First Citizens Bank & Trust Co. reduced its holdings in shares of Tenet Healthcare Corporation (NYSE:THC – Free Report) by 58.7% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,224 shares of the company’s stock after selling 4,586 shares during the quarter. First Citizens Bank & Trust Co.’s holdings in Tenet Healthcare were worth $824,000 at the end of the most recent quarter.
Other hedge funds have also bought and sold shares of the company. Manning & Napier Advisors LLC bought a new position in shares of Tenet Healthcare in the second quarter worth $168,761,000. Arrowstreet Capital Limited Partnership boosted its position in shares of Tenet Healthcare by 57.4% in the first quarter. Arrowstreet Capital Limited Partnership now owns 671,700 shares of the company’s stock valued at $126,757,000 after acquiring an additional 244,901 shares during the period. Bank of New York Mellon Corp bought a new position in shares of Tenet Healthcare in the second quarter valued at approximately $106,342,000. Empowered Funds LLC grew its stake in Tenet Healthcare by 22.1% during the first quarter. Empowered Funds LLC now owns 284,753 shares of the company’s stock valued at $53,736,000 after acquiring an additional 51,549 shares in the last quarter. Finally, Hsbc Holdings PLC lifted its stake in Tenet Healthcare by 3,478.7% in the 4th quarter. Hsbc Holdings PLC now owns 266,400 shares of the company’s stock worth $53,269,000 after purchasing an additional 258,956 shares in the last quarter. 95.44% of the stock is currently owned by hedge funds and other institutional investors.
Insider Buying and Selling at Tenet Healthcare In other news, CEO Saumya Sutaria sold 50,000 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $278.71, for a total value of $13,935,500.00. Following the completion of the sale, the chief executive officer directly owned 483,564 shares in the company, valued at approximately $134,774,122.44. The trade was a 9.37% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Lisa Foo sold 24,000 shares of the company’s stock in a transaction on Monday, August 31st. The shares were sold at an average price of $266.32, for a total transaction of $6,391,680.00. Following the completion of the sale, the executive vice president directly owned 8,053 shares of the company’s stock, valued at $2,144,674.96. This trade represents a 74.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 131,199 shares of company stock valued at $35,065,587. 0.97% of the stock is currently owned by corporate insiders.
Wall Street Analyst Weigh In A number of research firms have recently commented on THC. BMO Capital Markets assumed coverage on shares of Tenet Healthcare in a research report on Tuesday, September 22nd. They set a “market perform” rating and a $265.00 price target for the company. Guggenheim boosted their target price on Tenet Healthcare from $283.00 to $307.00 and gave the stock a “buy” rating in a research report on Friday. Cantor Fitzgerald restated an “overweight” rating on shares of Tenet Healthcare in a research note on Friday, October 2nd. Barclays raised their price target on Tenet Healthcare from $240.00 to $271.00 and gave the company an “overweight” rating in a report on Friday, July 24th. Finally, Robert W. Baird lifted their price target on Tenet Healthcare from $210.00 to $280.00 and gave the company a “neutral” rating in a research report on Tuesday, July 28th. Eighteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $278.45. View Our Latest Stock Analysis on Tenet Healthcare
Tenet Healthcare Trading Down 2.9% Shares of THC stock opened at $267.27 on Friday. The business has a 50-day moving average price of $264.36 and a two-hundred day moving average price of $219.07. Tenet Healthcare Corporation has a 12-month low of $157.58 and a 12-month high of $283.05. The company has a quick ratio of 1.35, a current ratio of 1.41 and a debt-to-equity ratio of 2.00. The firm has a market cap of $21.52 billion, a P/E ratio of 10.31, a price-to-earnings-growth ratio of 1.05 and a beta of 1.20.
Tenet Healthcare (NYSE:THC – Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The company reported $6.12 EPS for the quarter, beating the consensus estimate of $4.26 by $1.86. The firm had revenue of $6.04 billion for the quarter, compared to analyst estimates of $5.43 billion. Tenet Healthcare had a return on equity of 26.76% and a net margin of 10.27%. The company’s revenue was up 6.8% on a year-over-year basis. During the same period in the prior year, the company earned $4.02 EPS. Tenet Healthcare has set its FY 2026 guidance at 20.300-21.690 EPS. Equities analysts anticipate that Tenet Healthcare Corporation will post 21.04 EPS for the current fiscal year.
Tenet Healthcare Profile (Free Report)
Tenet Healthcare Corporation is a Dallas-based healthcare services company that operates hospitals, outpatient facilities and other healthcare businesses across the United States. Its operations include acute care hospitals, specialty hospitals, ambulatory surgery centers and related outpatient services.
Through its United Surgical Partners International subsidiary, Tenet is one of the major operators and developers of ambulatory surgery centers in the United States. These facilities provide same-day surgical procedures and other outpatient care across a range of medical specialties.
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Stock to Watch: Tenet Healthcare (THC - Free Report) Founded in 1967 and headquartered in Dallas, TX, Tenet Healthcare is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida. The company has investments in other health care companies and is one of the largest investor-owned health care delivery systems in the United States.
THC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. THC has a Growth Style Score of B, forecasting year-over-year earnings growth of 25.4% for the current fiscal year.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.44 to $21.04 per share. THC boasts an average earnings surprise of +22.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, THC should be on investors' short list.
In the latest trading session, Tenet Healthcare (THC - Free Report) closed at $275.13, marking a +1.3% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.33%. On the other hand, the Dow registered a gain of 1.08%, and the technology-centric Nasdaq increased by 0.08%.
The stock of hospital operator has risen by 2.19% in the past month, leading the Medical sector's loss of 0.15% and the S&P 500's gain of 1.41%.
The investment community will be paying close attention to the earnings performance of Tenet Healthcare in its upcoming release. The company is slated to reveal its earnings on October 29, 2026. The company is forecasted to report an EPS of $4.59, showcasing a 24.05% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $5.47 billion, up 3.4% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $21.04 per share and revenue of $22.2 billion. These totals would mark changes of +25.39% and +4.18%, respectively, from last year.
Any recent changes to analyst estimates for Tenet Healthcare should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. As of now, Tenet Healthcare holds a Zacks Rank of #3 (Hold).
With respect to valuation, Tenet Healthcare is currently being traded at a Forward P/E ratio of 12.91. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 12.91.
Meanwhile, THC's PEG ratio is currently 1.04. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Hospital industry had an average PEG ratio of 1.15 as trading concluded yesterday.
The Medical - Hospital industry is part of the Medical sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
In the latest trading session, Tenet Healthcare (THC - Free Report) closed at $263.78, marking a +1.23% move from the previous day. This move outpaced the S&P 500's daily gain of 0.6%. On the other hand, the Dow registered a gain of 0.83%, and the technology-centric Nasdaq increased by 0.64%.
The hospital operator's stock has dropped by 1.1% in the past month, exceeding the Medical sector's loss of 1.97% and lagging the S&P 500's gain of 1.34%.
Analysts and investors alike will be keeping a close eye on the performance of Tenet Healthcare in its upcoming earnings disclosure. The company's earnings report is set to go public on October 29, 2026. The company is expected to report EPS of $4.59, up 24.05% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.47 billion, up 3.4% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $21.04 per share and revenue of $22.2 billion. These totals would mark changes of +25.39% and +4.18%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Tenet Healthcare. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Tenet Healthcare currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Tenet Healthcare has a Forward P/E ratio of 12.39 right now. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 12.39.
One should further note that THC currently holds a PEG ratio of 0.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Hospital stocks are, on average, holding a PEG ratio of 1.08 based on yesterday's closing prices.
The Medical - Hospital industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 60, positioning it in the top 25% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.86% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Tenet Healthcare (THC - Free Report) Founded in 1967 and headquartered in Dallas, TX, Tenet Healthcare is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida. The company has investments in other health care companies and is one of the largest investor-owned health care delivery systems in the United States.
THC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.35; value investors should take notice.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.75 to $21.04 per share. THC boasts an average earnings surprise of +22.7%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, THC should be on investors' short list.
Tenet Healthcare (THC - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this hospital operator have returned -3.4% over the past month versus the Zacks S&P 500 composite's +1.4% change. The Zacks Medical - Hospital industry, to which Tenet belongs, has lost 3.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Tenet is expected to post earnings of $4.59 per share, indicating a change of +24.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $21.04 points to a change of +25.4% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $20.81 indicates a change of -1.1% from what Tenet is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Tenet.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Tenet, the consensus sales estimate for the current quarter of $5.47 billion indicates a year-over-year change of +3.4%. For the current and next fiscal years, $22.2 billion and $22.55 billion estimates indicate +4.2% and +1.6% changes, respectively.
Last Reported Results and Surprise HistoryTenet reported revenues of $5.63 billion in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $6.12 for the same period compares with $4.02 a year ago.
Compared to the Zacks Consensus Estimate of $5.39 billion, the reported revenues represent a surprise of +4.4%. The EPS surprise was +50%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Tenet is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Tenet. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Astrana Health (NASDAQ:ASTH – Get Free Report) and Tenet Healthcare (NYSE:THC – Get Free Report) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
Risk & Volatility Astrana Health has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Tenet Healthcare has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.
Valuation and Earnings This table compares Astrana Health and Tenet Healthcare”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Astrana Health $3.18 billion 0.63 $22.49 million $0.82 43.76 Tenet Healthcare $21.31 billion 0.98 $1.41 billion $25.93 9.96 Tenet Healthcare has higher revenue and earnings than Astrana Health. Tenet Healthcare is trading at a lower price-to-earnings ratio than Astrana Health, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations This is a breakdown of current ratings and target prices for Astrana Health and Tenet Healthcare, as reported by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Astrana Health 0 2 8 0 2.80 Tenet Healthcare 0 3 18 0 2.86 Astrana Health presently has a consensus target price of $49.88, indicating a potential upside of 39.01%. Tenet Healthcare has a consensus target price of $277.25, indicating a potential upside of 7.31%. Given Astrana Health’s higher possible upside, equities research analysts plainly believe Astrana Health is more favorable than Tenet Healthcare.
Institutional and Insider Ownership 52.8% of Astrana Health shares are held by institutional investors. Comparatively, 95.4% of Tenet Healthcare shares are held by institutional investors. 20.3% of Astrana Health shares are held by company insiders. Comparatively, 1.0% of Tenet Healthcare shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability This table compares Astrana Health and Tenet Healthcare’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Astrana Health 1.05% 10.30% 3.67% Tenet Healthcare 10.27% 26.76% 5.55% Summary Tenet Healthcare beats Astrana Health on 11 of the 14 factors compared between the two stocks.
About Astrana Health (Get Free Report)
Astrana Health, Inc., Inc., a physician-centric technology-powered healthcare management company, provides medical care services in the United States. It operates through three segments: Care Partners, Care Delivery, and Care Enablement. The company is leveraging its proprietary population health management and healthcare delivery platform, operates an integrated, value-based healthcare model which empowers the providers in its network to deliver care to its patients. It offers care coordination services to patients, families, primary care physicians, specialists, acute care hospitals, alternative sites of inpatient care, physician groups, and health plans. The company's physician network consists of primary care physicians, specialist physicians and extenders, and hospitalists. It serves patients, primarily covered by private or public insurance, such as Medicare, Medicaid, and health maintenance organization plans; and non-insured patients. The company was formerly known as Apollo Medical Holdings, Inc. and changed its name to Astrana Health, Inc. in February 2024. Astrana Health, Inc. was incorporated in 1985 and is headquartered in Alhambra, California.
(Get Free Report)
Tenet Healthcare Corporation operates as a diversified healthcare services company in the United States. The company operates through two segments: Hospital Operations and Services, and Ambulatory Care. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. The company also provides intensive and critical care, and/or coronary care units; cardiovascular, digestive disease, neurosciences, musculoskeletal, and obstetrics services; outpatient services, including physical therapy; tertiary care services, such as cardiothoracic surgery, complex spinal surgery, neonatal intensive care, and neurosurgery services; quaternary care services in heart and kidney transplants; and limb salvaging vascular procedure, acute level 1 trauma, intravascular stroke care, minimally invasive cardiac valve replacement, imaging, surgical robotic, and telemedicine access services. In addition, it offers a range of procedures and services, such as orthopedics, total joint replacement, and spinal and other musculoskeletal procedures; gastroenterology; pain management; otolaryngology; ophthalmology; and urology. It operates hospitals, ambulatory surgery centers, imaging centers, surgical hospitals, off-campus emergency departments, and micro-hospitals. Tenet Healthcare Corporation was founded in 1967 and is headquartered in Dallas, Texas.
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In the latest close session, Tenet Healthcare (THC - Free Report) was up +1.83% at $258.62. The stock outpaced the S&P 500's daily gain of 0.73%. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 1.19%.
Shares of the hospital operator have depreciated by 3.61% over the course of the past month, outperforming the Medical sector's loss of 3.74%, and lagging the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Tenet Healthcare in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.59, signifying a 24.05% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.47 billion, up 3.4% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $21.04 per share and revenue of $22.2 billion, indicating changes of +25.39% and +4.18%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Tenet Healthcare. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Tenet Healthcare is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Tenet Healthcare is at present trading with a Forward P/E ratio of 12.07. This expresses no noticeable deviation compared to the average Forward P/E of 12.07 of its industry.
It's also important to note that THC currently trades at a PEG ratio of 0.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Hospital industry had an average PEG ratio of 1.08 as trading concluded yesterday.
The Medical - Hospital industry is part of the Medical sector. With its current Zacks Industry Rank of 62, this industry ranks in the top 26% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
DALLAS--(BUSINESS WIRE)--Tenet Healthcare Corporation (NYSE: THC) will release its third quarter 2026 results before the market opens on Thursday, October 29, 2026, to be followed by a conference call at 9:00 a.m. CT (10:00 a.m. Eastern Time).
A live webcast and audio archive of the call may be accessed through the investor relations section of Tenet’s website at www.tenethealth.com/investors.
About Tenet Healthcare
Tenet Healthcare Corporation (NYSE: THC) is a diversified healthcare services company headquartered in Dallas. Our care delivery network includes United Surgical Partners International, the largest ambulatory platform in the country, which operates ambulatory surgery centers and surgical hospitals. We also operate a national portfolio of acute care and specialty hospitals, other outpatient facilities, a network of leading employed physicians and a global business center in Manila, Philippines. Our Conifer Health Solutions subsidiary provides revenue cycle management and value-based care services to hospitals, health systems, physician practices, employers, and other clients. Across the Tenet enterprise, we are united by our mission to deliver quality, compassionate care in the communities we serve. For more information, please visit www.tenethealth.com.
Key Takeaways Tenet Healthcare's operating cash flow rose 27.1% to $2.2 billion in the first half of 2026.Tenet Healthcare raised 2026 adjusted free cash flow guidance to $1.825-$2.055 billion.Tenet Healthcare has $2.1 billion left under its buyback authorization while funding growth. Tenet Healthcare Corporation (THC - Free Report) is becoming more aggressive with shareholder returns, and its improving cash generation is making that strategy easier to support. In the first half of 2026, net cash provided by operating activities rose 27.1% year over year to $2.2 billion, while adjusted free cash flow totaled $1.4 billion. That momentum also prompted Tenet Healthcare to raise its 2026 adjusted free cash flow guidance (after noncontrolling interests) to $1.825-$2.055 billion, strengthening the financial backdrop for continued buybacks.
The company has already stepped up repurchases meaningfully. THC spent around $1.4 billion on share buybacks during the first half of 2026, including $1 billion in the second quarter. Its board also increased the repurchase authorization by $2 billion, leaving about $2.1 billion available as of July 23, 2026. This gives THC substantial room to keep returning cash if operating trends remain favorable.
However, buybacks are only one part of the capital-allocation picture. Tenet Healthcare is also investing in USPI expansion, higher-acuity services and other growth initiatives while maintaining sizable capital expenditure requirements. The company expects capital spending of $700-$800 million in 2026, underscoring the need to preserve cash for organic growth alongside shareholder returns. Debt service remains another consideration even after Tenet extended maturities through its recent refinancing.
Thus, the sustainability of Tenet Healthcare’s capital-return strategy hinges on maintaining strong cash conversion while funding growth and managing leverage. If operating momentum holds, THC should have room to remain active on buybacks without significantly limiting investment in its ambulatory platform.
How Are Peers Faring?Some of THC’s peers in the medical space are Universal Health Services, Inc. (UHS - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) .
Universal Health Services is also balancing buybacks with sizable reinvestment needs. UHS repurchased $447.5 million of shares in the first half of 2026 and had approximately $977.6 million of remaining share repurchase authorization as of June 30, 2026, although planned capital spending of $950 million-$1.1 billion keeps reinvestment demands elevated.
HCA Healthcare is also maintaining a strong capital-return pace alongside heavy investment. It repurchased shares worth $3.6 billion in the first half of 2026 and paid dividends worth $354 million. As of June 30, 2026, HCA had $7.2 billion remaining under its buyback authorization while keeping its 2026 capital spending outlook at $5-$5.5 billion.
THC’s Price Performance, Valuation & EstimatesShares of Tenet Healthcare have gained 27.9% over the past year compared with the industry’s growth of 8.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, Tenet Healthcare trades at a forward price-to-earnings ratio of 12.34, above the industry average of 10.89. THC carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Tenet Healthcare’s 2026 earnings is pegged at $21.04 per share, implying 25.4% growth from the year-ago period.
Image Source: Zacks Investment Research
THC stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Tenet Healthcare (THC - Free Report) Founded in 1967 and headquartered in Dallas, TX, Tenet Healthcare is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida. The company has investments in other health care companies and is one of the largest investor-owned health care delivery systems in the United States.
THC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. THC has a Growth Style Score of B, forecasting year-over-year earnings growth of 25.4% for the current fiscal year.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.26 to $21.04 per share. THC boasts an average earnings surprise of +22.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, THC should be on investors' short list.
Investors interested in Medical stocks should always be looking to find the best-performing companies in the group. Has Tenet Healthcare (THC - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Tenet Healthcare is a member of the Medical sector. This group includes 915 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Tenet Healthcare is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for THC's full-year earnings has moved 19.5% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that THC has returned about 30.7% since the start of the calendar year. At the same time, Medical stocks have gained an average of 2.8%. This means that Tenet Healthcare is outperforming the sector as a whole this year.
Adicet Bio, Inc. (ACET - Free Report) is another Medical stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 7.1%.
Over the past three months, Adicet Bio, Inc.'s consensus EPS estimate for the current year has increased 21.5%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Tenet Healthcare belongs to the Medical - Hospital industry, a group that includes 4 individual companies and currently sits at #64 in the Zacks Industry Rank. On average, this group has gained an average of 11.5% so far this year, meaning that THC is performing better in terms of year-to-date returns.
On the other hand, Adicet Bio, Inc. belongs to the Medical - Biomedical and Genetics industry. This 437-stock industry is currently ranked #176. The industry has moved +7.3% year to date.
Investors with an interest in Medical stocks should continue to track Tenet Healthcare and Adicet Bio, Inc.. These stocks will be looking to continue their solid performance.
Key Takeaways Tenet Healthcare's revenues rose 6.8% despite declines in hospital and ambulatory surgical cases.USPI revenue per case climbed 6.3%, helping ambulatory revenue and adjusted EBITDA grow.Tenet Healthcare raised 2026 adjusted EBITDA guidance to $4.83-$5.03 billion. Tenet Healthcare Corporation’s (THC - Free Report) growth remains intact despite softer surgical volumes. In the second quarter of 2026, same-facility system-wide surgical cases at United Surgical Partners International (“USPI”), Tenet’s ambulatory surgery business, fell 1.2% year over year, while hospital surgeries declined 0.7%. Consolidated net operating revenues rose 6.8% to $5.63 billion, demonstrating that lower procedure volumes have not hindered revenue growth.
USPI benefited from a 6.3% rise in revenue per case, helping ambulatory revenues increase 9.3%. The gain reflected higher acuity and favorable service mix, while acquisitions and added service lines provided additional support. Higher revenue per case more than offset weaker case volumes, helping ambulatory adjusted EBITDA increase 8.8% to $542 million. This suggests USPI’s growth is becoming less dependent on surgical volumes alone.
The hospital business also shows that lower surgical volumes have not materially weakened operations. Hospital surgeries declined 0.7%, but adjusted admissions increased 2.6%. Revenue per adjusted admission grew 3.3%. This helped hospital adjusted EBITDA rise 22.3% to $762 million, with the margin expanding to 18.0% from 15.6%. The EBITDA improvement also benefited from $92 million of prior-year Medicaid supplemental revenues versus $70 million a year earlier.
THC’s raised 2026 adjusted EBITDA guidance of $4.83-$5.03 billion supports continued earnings growth. The company expects hospital adjusted admissions to rise 1-2% and USPI same-facility system-wide revenues to grow 3-6% for the year. Continued gains in acuity, favorable service mix and revenue per case should help offset softer surgical volumes and support further growth.
Peer PerformanceTenet’s healthcare peers, including Universal Health Services, Inc. (UHS - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) , also reported solid volume and revenue trends in the second quarter of 2026.
Universal Health Services is also benefiting from higher revenue per patient. In the second quarter of 2026, adjusted admissions increased 2.9%, while revenue per adjusted admission rose 3%. UHS’ behavioral-health revenues grew 7.4%, supporting overall revenue growth.
HCA Healthcare is seeing steady demand across its hospital network. In the second quarter of 2026, admissions increased 2.4%, while revenue per equivalent admission rose 6% year over year. Higher revenue intensity and Medicaid supplemental payments supported growth, while emergency-room visits also increased.
THC’s Price Performance, Valuation & EstimatesShares of Tenet Healthcare have gained 30.4% over the past year compared with the industry's 12.7% growth over the same period.
Image Source: Zacks Investment Research
From a valuation standpoint, THC trades at a forward price-to-earnings ratio of 12.28X, up from the industry average of 10.95X. THC carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for THC’s 2026 earnings is pegged at $21.04 per share, implying a 25.4% jump from the year-ago period’s level.
Image Source: Zacks Investment Research
THC currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tenet Healthcare (THC - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this hospital operator have returned -6.5% over the past month versus the Zacks S&P 500 composite's +1.3% change. The Zacks Medical - Hospital industry, to which Tenet belongs, has lost 3.5% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Tenet is expected to post earnings of $4.59 per share for the current quarter, representing a year-over-year change of +24.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.2%.
The consensus earnings estimate of $21.04 for the current fiscal year indicates a year-over-year change of +25.4%. This estimate has changed +0.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $20.83 indicates a change of -1% from what Tenet is expected to report a year ago. Over the past month, the estimate has changed +2.6%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Tenet is rated Zacks Rank #1 (Strong Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Tenet, the consensus sales estimate for the current quarter of $5.47 billion indicates a year-over-year change of +3.4%. For the current and next fiscal years, $22.2 billion and $22.55 billion estimates indicate +4.2% and +1.6% changes, respectively.
Last Reported Results and Surprise HistoryTenet reported revenues of $5.63 billion in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $6.12 for the same period compares with $4.02 a year ago.
Compared to the Zacks Consensus Estimate of $5.39 billion, the reported revenues represent a surprise of +4.4%. The EPS surprise was +50%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Tenet is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Tenet. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, September 24:
Red Violet, Inc. (RDVT - Free Report) : This analytics and information solutions company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.8% over the last 60 days.
Red Violet’s shares gained 35.5% over the last three months compared with the S&P 500’s advance of 4.7%. The company possesses a Momentum Score of A.
BrightSpring Health Services, Inc. (BTSG - Free Report) : This home and community-based healthcare services platformhas a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.3% over the last 60 days.
BrightSpring’s shares gained 24.5% over the last six months compared with the S&P 500’s advance of 16.9%. The company possesses a Momentum Score of B.
Tenet Healthcare Corporation (THC - Free Report) : This diversified healthcare services company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.5% over the last 60 days.
Tenet’s shares gained 39.4% over the last three months compared with the S&P 500’s advance of 4.7%. The company possesses a Momentum Score of B.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Momentum score and how it is calculated here.
In the latest close session, Tenet Healthcare (THC - Free Report) was down 2.14% at $256.44. The stock's performance was behind the S&P 500's daily loss of 0.76%. On the other hand, the Dow registered a loss of 0.68%, and the technology-centric Nasdaq decreased by 1.13%.
Coming into today, shares of the hospital operator had lost 3.61% in the past month. In that same time, the Medical sector lost 3.03%, while the S&P 500 gained 1.26%.
The upcoming earnings release of Tenet Healthcare will be of great interest to investors. In that report, analysts expect Tenet Healthcare to post earnings of $4.59 per share. This would mark year-over-year growth of 24.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.47 billion, up 3.4% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $21.04 per share and revenue of $22.2 billion. These totals would mark changes of +25.39% and +4.18%, respectively, from last year.
Any recent changes to analyst estimates for Tenet Healthcare should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.3% upward. Right now, Tenet Healthcare possesses a Zacks Rank of #2 (Buy).
Looking at valuation, Tenet Healthcare is presently trading at a Forward P/E ratio of 12.45. This expresses no noticeable deviation compared to the average Forward P/E of 12.45 of its industry.
One should further note that THC currently holds a PEG ratio of 1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Hospital industry currently had an average PEG ratio of 1.1 as of yesterday's close.
The Medical - Hospital industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 104, finds itself in the top 43% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow THC in the coming trading sessions, be sure to utilize Zacks.com.
Nadja West, Director at Tenet Healthcare (THC +0.03%), disposed of 1,152 shares of common stock on Sept. 2, 2026, as disclosed in a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$298,138Shares sold1,152Post-transaction shares (directly held)23,653Post-transaction value$6.1 millionTransaction value based on SEC Form 4 weighted average sale price ($258.80); post-transaction value based on Sept. 2, 2026, market close ($258.53).
Key questionsWhat was the magnitude of this transaction relative to the insider's total direct equity position?
The sale involved 1,152 shares, representing 5% of the direct common stock holdings before the transaction, leaving the director with a remaining direct stake of 23,653 shares.How does the current market value of the remaining holdings compare to the transaction proceeds?
The transaction generated approximately $298,138 in proceeds, while the insider's remaining direct equity position is valued at $6.1 million based on the Sept. 2, 2026, market close price of $258.53.What was the equity performance context leading up to this disposal?
At the time of execution on Sept. 2, 2026, shares were priced at $258.80, following a period in which the company delivered a 39% one-year total return.How is the company's operational structure defined?
Tenet Healthcare operates as a provider of health solutions across three primary divisions: Hospital Operations and Other, Ambulatory Care, and Conifer, including a network of acute care facilities that provide core hospital and diagnostic services.Company OverviewMetricValueShare Price (as of market close 2026-09-02)$258.53Market Capitalization$21.1 billionRevenue (TTM)$21.8 billionNet Income (TTM)$2.2 billionCompany SnapshotTenet Healthcare operates a comprehensive network of acute care facilities and ambulatory care centers that generate revenue through hospital operations, including emergency services, surgical procedures, diagnostic imaging, clinical laboratory services, and on-site pharmacy operations.The company operates through three primary divisions -- Hospital Operations and Other, Ambulatory Care, and Conifer -- which collectively deliver integrated healthcare services across inpatient, outpatient, and ancillary care settings.Tenet serves a diverse patient base, including insured individuals, government-sponsored program beneficiaries, and self-pay patients, positioning itself as a broad-based healthcare provider across multiple geographic markets.Tenet Healthcare represents one of the largest healthcare facility operators in the United States, with 77,000 employees and a diversified service portfolio spanning acute care, ambulatory services, and healthcare management solutions. The company's scale and multi-divisional structure provide operational leverage and diversified revenue streams across the healthcare continuum. With TTM revenue of $21.8 billion and net income of $2.2 billion, Tenet demonstrates significant profitability and market positioning within the medical care facilities sector.
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Moneyball Superscore
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What this transaction means for investorsOn Sept. 2, West sold 1,152 shares in a transaction valued at approximately $298,138. Given the details of the transaction, this doesn't appear to be more than a routine sale. While West sold over 1,100 shares, the insider still holds 23,653 shares, indicating continued alignment and conviction in the company's future. In addition, as of this writing, the Tenet stock price has climbed 37.7% over the past year, outperforming the S&P 500's 14.8% return over the same period. Given the outperformance in Tenet's stock price, it's not unusual for an executive to consider selling shares to take some gains off the table. With the minimal number of shares sold and the strong stock price performance over the last year, this sale doesn't appear to be a cause for concern for shareholders.
For what may be next for the Tenet stock price, analysts view the company favorably but appear to have cautious outlooks over the next year. Of the 24 who cover the company, 83% rate it a buy, while 17% rate it a hold. But from that group, the median one-year price target is $284. From today's price of $261.99, that would represent a gain of 8.4%.
Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
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Stock to Watch: Tenet Healthcare (THC - Free Report) Founded in 1967 and headquartered in Dallas, TX, Tenet Healthcare is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida. The company has investments in other health care companies and is one of the largest investor-owned health care delivery systems in the United States.
THC is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.4; value investors should take notice.
Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $3.54 to $21.04 per share. THC also boasts an average earnings surprise of +22.7%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, THC should be on investors' short list.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Tenet Healthcare (THC - Free Report) . THC is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.
We also note that THC holds a PEG ratio of 0.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. THC's PEG compares to its industry's average PEG of 1.50. Within the past year, THC's PEG has been as high as 1.30 and as low as 0.55, with a median of 0.81.
Another valuation metric that we should highlight is THC's P/B ratio of 3.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.62. THC's P/B has been as high as 3.18 and as low as 1.75, with a median of 2.55, over the past year.
Finally, investors will want to recognize that THC has a P/CF ratio of 7.51. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.84. Within the past 12 months, THC's P/CF has been as high as 7.76 and as low as 2.83, with a median of 4.42.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Tenet Healthcare is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THC feels like a great value stock at the moment.
The Zacks Medical-Hospital industry’s demand environment is relatively favorable, supported by an aging population, rising acuity, increased utilization and growth in higher-complexity procedures. However, margin expansion is harder to achieve because drug, supply and labor costs are rising quickly while payer mix is becoming less favorable and government reimbursement increases remain comparatively modest. Patients and payers are increasingly shifting toward lower-cost care settings.
Accelerating investments in AI and strategic mergers and acquisitions also remain important growth levers to expand scale, improve efficiency and strengthen market presence. Companies like Tenet Healthcare Corporation (THC - Free Report) , Acadia Healthcare Company, Inc. (ACHC - Free Report) and Community Health Systems, Inc. (CYH - Free Report) are strengthening cost discipline and working towards protecting margins.
Industry Overview The Zacks Medical-Hospital industry comprises for-profit hospital companies that provide healthcare through different types of hospitals, including acute care, outpatient, rehabilitation and psychiatric. These entities are engaged in internal medicine, general surgery, cardiology, oncology, neurosurgery, orthopedics and obstetrics, telehealth, mental health and diagnostic and emergency services. Revenues of these companies depend on inpatient occupancy, medical and ancillary services ordered by physicians and provided to patients, and the volume of ambulatory surgery centers’ (ASC) procedures. These companies receive payments for patient services from the government under the Medicare program, Medicaid, or similar programs, managed care plans (including plans offered through the American Health Benefit Exchanges), private insurers and directly from patients.
4 Key Trends Shaping the Hospital Industry Patient Demand Rises as Outpatient Care Expands: Healthcare demand remains healthy, supported by an aging population, higher patient acuity and growing treatment needs. At the same time, care continues to move beyond traditional inpatient settings. Outpatient visits are growing faster than inpatient volumes as more procedures shift to ambulatory surgery centers and other lower-cost sites. Hospital systems are responding by expanding outpatient capacity, building specialty networks and strengthening physician relationships to capture demand across the care continuum.
Rising Costs and Payer Shifts Pressure Margins: Hospital finances remain strained by higher labor, drug and supply costs, while reimbursement has struggled to keep pace with expense growth. The pressure has intensified in 2026 as bad debt and charity care have risen alongside a less favorable payer mix. Providers are placing greater focus on staffing efficiency, purchasing discipline, revenue-cycle performance and patient flow. These efforts are becoming increasingly important as hospitals balance continued demand growth with the need to protect margins and preserve service capacity.
AI Takes a Larger Role in Hospital Operations: Artificial intelligence is moving deeper into everyday hospital workflows, with some of the clearest uses emerging in billing, coding, clinical documentation and revenue-cycle management. Providers are using automation to reduce manual work, improve accuracy and ease administrative demands on clinical staff. Digital tools, including virtual nursing, remote monitoring and telehealth, are also extending care beyond hospital walls.Investment is increasingly centered on technologies that can deliver measurable productivity gains while improving access and patient experience.
Health Systems Reshape Networks Through Strategic Deals: Hospital deal activity has strengthened in 2026, but the focus is moving beyond scale alone. Health systems are pursuing partnerships, acquisitions and selective combinations to add capabilities, deepen regional networks and expand attractive service lines. At the same time, some operators are exiting weaker or non-core markets and redirecting capital toward outpatient facilities, specialty care and other growth areas. This portfolio approach is helping providers strengthen their market presence while using capital more selectively.
Zacks Industry Rank Indicates Positive Outlook The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, signals promising near-term prospects. The Zacks Medical-Hospital industry, which is housed within the broader Zacks Medical sector, currently carries a Zacks Industry Rank #63, which places it in the top 26% of nearly 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Looking at the aggregate earnings estimate revisions, it appears that analysts are becoming optimistic about this group’s earnings growth potential. As a matter of fact, the industry’s earnings estimates for 2026 have gone up by 6.9% over the past year.
Considering the encouraging dynamics of the industry, we will present a few stocks that should be on your watchlist. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.
Industry Outperforms Sector and S&P 500 The Zacks Medical-Hospital industry has fared better than the broader Zacks Medical sector and the Zacks S&P 500 Composite over the past year, benefiting from resilient patient demand, higher revenue per patient and improving operating efficiency. Better-than-expected earnings and growth in ambulatory services have also supported sentiment toward several hospital operators.
The industry has gained 19.9% over the past year compared with a 10.1% increase for the broader sector and a 16.3% advance for the S&P 500.
One-Year Price Performance
Industry's Current Valuation Since hospital operators are capital-intensive businesses that require significant investment in facilities and equipment, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) ratio. On the basis of the trailing 12-month EV/EBITDA ratio, the industry trades at 7.47X compared with the S&P 500’s 17.61X and the sector’s 10.29X.
Over the past five years, the industry has traded as high as 10.66X and as low as 6.34X, with a median of 8.29X, as the charts below show.
EV/EBITDA Ratio (Past 5 Years)
3 Hospital Stocks to Watch Tenet Healthcare: Dallas, TX-based THC operates acute care hospitals and is one of the largest ambulatory care platforms. It continues to expand its Ambulatory Care segment through strategic buyouts to capitalize on growing demand for outpatient procedures. The company is also benefiting from solid same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues.
The Zacks Consensus Estimate for Tenet Healthcare’s 2026 bottom line is pegged at $21.04 per share, up 25.4% year over year. But the same for 2027 indicates a slight decline to $20.83 per share. It beat earnings estimates in each of the past four quarters, with an average surprise of 22.7%. The consensus mark for 2026 and 2027 revenues indicates 4.2% and 1.6% year-over-year growth, respectively. Shares of the company have gained 42.2% over the past year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Price & Consensus: THC
Acadia Healthcare: Headquartered in Franklin, TN, Acadia Healthcare operates acute inpatient psychiatric facilities and Comprehensive Treatment Centers, which remain central to its growth strategy. Higher patient days and rising admissions continue to support results, while demand for mental health and substance use treatment remains strong. Healthy cash generation and a valuable real estate portfolio provide financial flexibility. After a year of operational setbacks, strategic actions are aimed at improving execution, restoring momentum and supporting an earnings recovery.
The Zacks Consensus Estimate for Acadia Healthcare’s 2026 bottom line is pegged at $1.55 per share, which remained stable over the past month. The same for 2027 indicates a 14.4% year-over-year jump to $1.78 per share. It beat earnings estimates in each of the past four quarters, with an average surprise of 47%. The consensus mark for 2026 and 2027 revenues indicates 3.4% and 5.4% year-over-year growth, respectively. ACHC shares have increased 24.9% over the past year. It currently has a Zacks Rank #3 (Hold).
Price & Consensus: ACHC
Community Health Systems: Based in Franklin, TN, Community Health Systems operates acute care hospitals and outpatient facilities across the country. The company is benefiting from higher same-store admissions, while selective partnerships offer avenues for growth. CYH is also selling non-core assets to streamline its portfolio, lower debt and strengthen profitability over time. Although these divestitures may weigh on near-term results, they should improve the company’s financial position and operating focus.
The Zacks Consensus Estimate for Community Health Systems’ 2026 bottom line is pegged at a loss of 86 cents per share, which has remained stable over the past 30 days. The same for 2027 implies a 22.9% year-over-year improvement. The consensus mark for 2026 and 2027 revenues is pegged at $11.43 billion and $11.41 billion, respectively, impacted by divestment efforts. Shares of Community Health Systems have increased 0.7% in the past year. It also has a Zacks Rank #3 at present.
Tenet Healthcare Corporation (NYSE:THC – Get Free Report) Director Richard Mark sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $263.42, for a total transaction of $2,634,200.00. Following the transaction, the director directly owned 25,121 shares in the company, valued at approximately $6,617,373.82. This trade represents a 28.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link.
Tenet Healthcare Stock Down 1.5% Shares of NYSE:THC opened at $260.51 on Wednesday. The business’s 50 day moving average is $247.22 and its 200 day moving average is $212.60. The stock has a market cap of $20.98 billion, a P/E ratio of 10.05, a price-to-earnings-growth ratio of 1.01 and a beta of 1.23. Tenet Healthcare Corporation has a 52-week low of $157.58 and a 52-week high of $283.05. The company has a quick ratio of 1.35, a current ratio of 1.41 and a debt-to-equity ratio of 2.00.
Tenet Healthcare (NYSE:THC – Get Free Report) last issued its earnings results on Thursday, July 23rd. The company reported $6.12 earnings per share for the quarter, topping the consensus estimate of $4.26 by $1.86. The business had revenue of $6.04 billion during the quarter, compared to analysts’ expectations of $5.43 billion. Tenet Healthcare had a return on equity of 26.76% and a net margin of 10.27%.The business’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period in the prior year, the business earned $4.02 EPS. Tenet Healthcare has set its FY 2026 guidance at 20.300-21.690 EPS. Sell-side analysts predict that Tenet Healthcare Corporation will post 21.04 EPS for the current year.
Wall Street Analyst Weigh In THC has been the subject of a number of analyst reports. Barclays upped their target price on Tenet Healthcare from $240.00 to $271.00 and gave the stock an “overweight” rating in a report on Friday, July 24th. Stephens reiterated an “overweight” rating and issued a $285.00 target price on shares of Tenet Healthcare in a research note on Monday, July 27th. Zacks Research raised shares of Tenet Healthcare from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, August 11th. The Goldman Sachs Group restated a “buy” rating and issued a $305.00 target price on shares of Tenet Healthcare in a research note on Tuesday, July 28th. Finally, Piper Sandler set a $308.00 target price on shares of Tenet Healthcare in a research report on Monday, July 27th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Buy” and an average target price of $275.53. Check Out Our Latest Research Report on Tenet Healthcare
Institutional Trading of Tenet Healthcare Institutional investors and hedge funds have recently bought and sold shares of the business. Elyxium Wealth LLC purchased a new position in shares of Tenet Healthcare in the fourth quarter valued at approximately $29,000. Trust Co. of Vermont acquired a new position in Tenet Healthcare in the 2nd quarter valued at $37,000. OP Asset Management Ltd purchased a new position in Tenet Healthcare in the 1st quarter valued at $49,000. Compass Financial Management LLC purchased a new stake in shares of Tenet Healthcare during the second quarter worth $57,000. Finally, William B. Walkup & Associates Inc. raised its position in shares of Tenet Healthcare by 88.7% in the fourth quarter. William B. Walkup & Associates Inc. now owns 302 shares of the company’s stock valued at $60,000 after buying an additional 142 shares during the last quarter. 95.44% of the stock is currently owned by institutional investors and hedge funds.
Tenet Healthcare Company Profile (Get Free Report)
Tenet Healthcare Corporation (NYSE: THC) is a diversified healthcare services company that owns and operates acute care hospitals and other healthcare facilities in the United States. Its hospitals provide services including emergency care, surgery, cardiovascular care, orthopedics, oncology, women’s health and other inpatient and outpatient treatments.
Through its ambulatory business, United Surgical Partners International, Tenet operates and manages ambulatory surgery centers and other outpatient facilities.
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Here are three stocks with buy rank and strong value characteristics for investors to consider today, September 16:
Par Pacific Holdings, Inc. (PARR - Free Report) : This energy and infrastructure business carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 19.5% over the last 60 days.
Par Pacific has a price-to-earnings ratio (P/E) of 3.83, compared with 13.90 for the industry. The company possesses a Value Score of A.
Kennametal Inc. (KMT - Free Report) : This company that engages in the business of tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 54.1% over the last 60 days.
Kennametal has a price-to-earnings ratio (P/E) of 6.45, compared with 17.10 for the industry. The company possesses a Value Score of A.
Tenet Healthcare Corporation (THC - Free Report) : This diversified healthcare services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 20.2% over the last 60 days.
Tenet Healthcare has a price-to-earnings ratio (P/E) of 12.57, compared with 21.99 for the S&P 500. The company possesses a Value Score of A.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Value score and how it is calculated here.
Tenet Healthcare (THC - Free Report) closed at $260.85 in the latest trading session, marking a -1.38% move from the prior day. This move lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.78%.
The stock of hospital operator has fallen by 0.02% in the past month, lagging the Medical sector's gain of 0.57% and overreaching the S&P 500's loss of 1.99%.
Market participants will be closely following the financial results of Tenet Healthcare in its upcoming release. The company is forecasted to report an EPS of $4.59, showcasing a 24.05% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $5.47 billion, reflecting a 3.4% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $21.04 per share and a revenue of $22.2 billion, demonstrating changes of +25.39% and +4.18%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Tenet Healthcare. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.3% higher. Tenet Healthcare is currently sporting a Zacks Rank of #2 (Buy).
From a valuation perspective, Tenet Healthcare is currently exchanging hands at a Forward P/E ratio of 12.57. This expresses no noticeable deviation compared to the average Forward P/E of 12.57 of its industry.
We can also see that THC currently has a PEG ratio of 1.01. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. THC's industry had an average PEG ratio of 1.01 as of yesterday's close.
The Medical - Hospital industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Tenet Healthcare (THC - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this hospital operator is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Tenet is 25.7%, investors should actually focus on the projected growth. The company's EPS is expected to grow 25.4% this year, crushing the industry average, which calls for EPS growth of -8.4%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Tenet is 20.1%, which is higher than many of its peers. In fact, the rate compares to the industry average of 17.9%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 11.5% over the past 3-5 years versus the industry average of 3.9%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Tenet have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.3% over the past month.
Bottom LineTenet has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Tenet is a potential outperformer and a solid choice for growth investors.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Tenet Healthcare (THC - Free Report) .
Tenet currently has an average brokerage recommendation (ABR) of 1.30, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 22 brokerage firms. An ABR of 1.30 approximates between Strong Buy and Buy.
Of the 22 recommendations that derive the current ABR, 17 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 77.3% and 13.6% of all recommendations.
Brokerage Recommendation Trends for THC
Check price target & stock forecast for Tenet here>>>
While the ABR calls for buying Tenet, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is THC a Good Investment?Looking at the earnings estimate revisions for Tenet, the Zacks Consensus Estimate for the current year has increased 0.3% over the past month to $21.04.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Tenet. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Tenet may serve as a useful guide for investors.
Key Takeaways Tenet Healthcare benefits from higher-acuity demand and stronger commercial employer revenues.USPI revenues rose 9.3% to $1.4 billion, supported by acquisitions and de novo ambulatory centers.THC raised its 2026 EBITDA outlook while balancing growth investments, buybacks and debt refinancing. Tenet Healthcare Corporation (THC - Free Report) is benefiting from higher-acuity services, strong commercial revenues and the continued expansion of its ambulatory care platform, USPI. Shares of THC have risen 20.3% over the past six months, outperforming the industry’s growth of 8.2%.
THC, with a market cap of $21.2 billion, provides healthcare services primarily through general hospitals and related healthcare facilities. The company operates through two reportable segments: Hospital Operations and Services, and Ambulatory Care. Its forward 12-month P/E ratio of 12.62X is higher than the industry average of 11X.
Courtesy of solid prospects, THC currently carries a Zacks Rank #2 (Buy) and a Growth Score of B.
Let’s delve deeper.
Where Do THC’s Estimates Stand?The Zacks Consensus Estimate for Tenet Healthcare’s 2026 earnings is pegged at $21.04 per share, indicating a 25.4% year-over-year rise. The consensus mark for revenues is pinned at $22.2 billion, indicating 4.2% year-over-year growth. Furthermore, it beat earnings estimates in each of the past four quarters, with an average surprise of 22.7%.
THC’s Growth DriversTenet Healthcare is benefiting from continued demand for higher-acuity services across its hospital network. In the second quarter of 2026, same-hospital adjusted admissions increased 2.6% year over year, while same-hospital net patient service revenues per adjusted admission rose 3.3%. The increase was primarily driven by stronger commercial employer net patient revenues and higher Medicaid supplemental revenues, partly offset by an unfavorable payer mix resulting from lower exchange admissions.
The United Surgical Partners International (“USPI”) ambulatory business remains a key growth engine. The segment’s revenues grew 9.3% to $1.4 billion, while surgical business same-facility system-wide net patient service revenues grew 5%. USPI is widening its presence through acquisitions and de novo centers, alongside expansion in orthopedics, urology, robotics, bariatrics and cardiovascular procedures. The United Surgical Partners had interests in 538 ambulatory surgery centers and 26 surgical hospitals in 37 states as of June 30, 2026. The company expects to exceed $300 million of ambulatory M&A spending in 2026.
It also continues to advance technology-enabled cost initiatives, including automation and AI, to improve productivity and strengthen its cost structure. Conifer’s strong cash collection performance is supporting Tenet Healthcare’s free cash flow conversion, providing additional flexibility to fund growth investments. THC has also raised its 2026 adjusted EBITDA outlook to $4.83-$5.03 billion and continues to balance business investments with share repurchases and debt refinancing.
In the second quarter of 2026, the company repurchased shares worth $1 billion. Its board of directors also expanded the share repurchase authorization by $2 billion. As of July 23, 2026, it had approximately $2.1 billion remaining under its share repurchase authorization. Additionally, THC's return on assets of 5.6% is higher than the industry average of 4.4%, indicating that the company is generating superior returns from its asset base.
THC’s Key RisksThere are some factors, however, that investors should keep a careful eye on.
Despite the company’s cost-management program, expenses have trended upward. The operating expenses rose 2.1% year over year in the second quarter of 2026. Elevated labor costs, higher medical supplies and increased patient acuity are likely to sustain this trend, potentially limiting margin expansion and weighing on profitability.
Other Stocks to ConsiderSome other top-ranked stocks in the Medical space are UnitedHealth Group Incorporated (UNH - Free Report) , Globus Medical, Inc. (GMED - Free Report) and Centene Corporation (CNC - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for UnitedHealth Group’s current-year earnings of $19.82 per share has witnessed two upward revisions in the past 30 days, with no movement in the opposite direction. UNH beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 12.1%. The consensus estimate for current-year revenues is pegged at $446.8 billion.
The Zacks Consensus Estimate for Globus Medical’s current-year earnings of $4.99 per share has witnessed one upward revision in the past 30 days, against no movement in the opposite direction. GMED beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.9%. The consensus estimate for current-year revenues is pegged at $3.2 billion, suggesting 8.8% year-over-year growth.
The Zacks Consensus Estimate for Centene’s current-year earnings of $4.89 per share has witnessed nine upward revisions in the past 60 days, against no movement in the opposite direction. CNC beat earnings estimates in each of the trailing four quarters, with an average surprise of 151.3%. The consensus estimate for current-year revenues is pegged at $196.3 billion, suggesting 0.8% year-over-year growth.
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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Tenet Healthcare (THC - Free Report) Founded in 1967 and headquartered in Dallas, TX, Tenet Healthcare Corp., is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida. The company has investments in other health care companies and is one of the largest investor-owned health care delivery systems in the United States.
THC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. THC has a Growth Style Score of B, forecasting year-over-year earnings growth of 25.4% for the current fiscal year.
Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $3.43 to $21.04 per share. THC also boasts an average earnings surprise of +22.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, THC should be on investors' short list.
William McDowell - Vice President of Investor Relations
Saumya Sutaria - Chairman & CEO
Sun Park - Executive VP & CFO
Conference Call Participants
Stephen Baxter - Wells Fargo Securities, LLC, Research Division
Presentation
Stephen Baxter
Wells Fargo Securities, LLC, Research Division
All right. Awesome. Thanks, everyone, for being with us today. Really pleased to have Tenet Healthcare with us for this chat. As I'm sure you know, Tenet operates ASCs, acute care hospitals and a revenue cycle management business. With us from the company, we're pleased to have Saum Sutaria, Chairman and CEO; Sun Park, CFO; and then Will McDowell from Investor Relations. Will, I understand you wanted to say before we get started. So I'll flip it to you, and then maybe we'll get right into it.
William McDowell
Vice President of Investor Relations
Yes. Thanks a lot, Steve, and thanks, everyone, for joining us today. In the context of our conversation today, we may be making some forward-looking statements. In relation to these statements, I suggest you refer back to the cautionary statement within our most recent earnings release as well as other SEC filings. And I'll turn it back to you, Steve, for Q&A.
Question-and-Answer Session
Stephen Baxter
Wells Fargo Securities, LLC, Research Division
Great. Okay. Well, thank you again for so much for being here. Maybe a good place would be just to start right off the top going into USPI. I mean, obviously, you've spent a great deal of time kind of familiarizing Wall Street and the investment community with the high acuity strategy. I guess, like as you take a step back, like maybe give us a minute or 2 kind of state of the union, like where does the high acuity strategy sit today? What are some of
DALLAS--(BUSINESS WIRE)--Tenet Healthcare Corporation (NYSE: THC) today announced the pricing of the previously announced private placement offering and has agreed to issue and sell $2.0 billion in aggregate principal amount of senior notes due on September 15, 2034, which will bear interest at a rate of 6.250% per annum (the “notes”). The aggregate principal amount of notes to be issued in the offering was increased to $2.0 billion from the previously announced amount of $1.5 billion. Completi.
DALLAS--(BUSINESS WIRE)--Tenet Healthcare Corporation (NYSE: THC) today announced a private placement offering of $1.5 billion in aggregate principal amount of new senior notes due 2034 (the “notes”) to refinance $1.5 billion of its currently outstanding notes. Completion of the notes offering is subject to, among other things, pricing and customary closing conditions. Tenet intends to use the net proceeds from the sale of the notes, after payment of fees and expenses, to finance, together with.
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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
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The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Tenet Healthcare (THC - Free Report) Founded in 1967 and headquartered in Dallas, TX, Tenet Healthcare Corp., is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida. The company has investments in other health care companies and is one of the largest investor-owned health care delivery systems in the United States.
THC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Medical stock. THC has a Momentum Style Score of B, and shares are up 1.1% over the past four weeks.
Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $3.43 to $21.04 per share. THC also boasts an average earnings surprise of +22.7%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, THC should be on investors' short list.
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Primed to grow right now with long-term potential gains of 2X and more.
Primed to grow right now with long-term potential gains of 2X and more.
SPCX briefly reclaimed a $2 trillion market cap as Starlink growth, launch dominance and AI ambitions fueled investor optimism despite execution risks.
SPCX briefly reclaimed a $2 trillion market cap as Starlink growth, launch dominance and AI ambitions fueled investor optimism despite execution risks.
The consensus for today is expected to show August jobs up 55,000 (up 53K in the private sector and 2K in the public sector), while the unemployment rate is forecast at 4.2%.
The consensus for today is expected to show August jobs up 55,000 (up 53K in the private sector and 2K in the public sector), while the unemployment rate is forecast at 4.2%.
Stocks priced under $10 can present appealing entry points for investors seeking outsized returns. Here's our list of the best cheap stocks right now.
Stocks priced under $10 can present appealing entry points for investors seeking outsized returns. Here's our list of the best cheap stocks right now.
Gold stocks, or shares of companies involved in mining or streaming the precious metal, offer investors a way to participate indirectly in gold price booms.
Gold stocks, or shares of companies involved in mining or streaming the precious metal, offer investors a way to participate indirectly in gold price booms.
Biotech stocks are one of the most dynamic sectors in the market, combining scientific innovation with substantial financial opportunity. Here are some top current buys.
Biotech stocks are one of the most dynamic sectors in the market, combining scientific innovation with substantial financial opportunity. Here are some top current buys.
Amazon, AbbVie and Alibaba face contrasting growth drivers and challenges, from AI investment and drug launches to costly spending cycles.
Amazon, AbbVie and Alibaba face contrasting growth drivers and challenges, from AI investment and drug launches to costly spending cycles.
Space ETFs offer exposure to a booming space economy, helping investors capture long-term growth while mitigating risks tied to individual companies.
Space ETFs offer exposure to a booming space economy, helping investors capture long-term growth while mitigating risks tied to individual companies.
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Erica Fabian says THC-infused drinks have become an alcohol alternative that have made a profound difference in her family.
"Drinking [alcohol] is not healthy for both myself and my husband," said Fabian, a business owner and military spouse.
Her husband, a retired 20-year Navy SEAL veteran with severe post-traumatic stress disorder, has found THC beverages particularly helpful, she said.
"It's an actual game-changer," Fabian said. "I've seen it with my own eyes."
But now, uncertainty around the category is creating concerns that it could become harder to get those beverages. Congress this week once again pushed off a federal crackdown on hemp-derived THC products, which companies have sold for years through an existing legal loophole even though recreational cannabis use remains illegal at the federal level.
The House on Tuesday passed a stopgap spending measure that, in addition to keeping the U.S. government funded, delays new federal restrictions on hemp-derived THC products from Nov. 12 to Dec. 11. The measure buys the hemp industry another month to persuade lawmakers to create a regulatory framework to allow the continued sale of those products rather than ban them.
The stakes are growing as consumer demand booms. THC beverages generated $239 million in measured U.S. retail sales in the 52 weeks through April, up 135% from a year earlier, according to NielsenIQ. The data tracked more than 1,170 products across more than 200 brands.
Though the drinks are legal for now, the prospect of a ban has already affected beverage makers.
Jake Bullock is the CEO of THC beverage maker Cann, which he said has become the top-selling THC drink at Target and the No. 2 nonalcoholic beverage at Sprouts. He said the company is seeing record sales to retailers, but a sharp pullback from wholesalers who are trying to avoid being stuck with inventory if Congress bans the product.
"Our distributors should be buying more from us, but they're not," he said.
Meanwhile, Joe Gerrity, CEO and co-founder of hemp beverage manufacturer Crescent Canna, said his company has already laid off half of its employees because of how congressional inaction has affected the business this year.
Congress approved a measure as part of its government funding bill in November 2025, initially giving companies until this November to comply with new restrictions on intoxicating hemp products that had been allowed under the 2018 farm bill.
"Nine months after passing a bill that would kill tens of thousands of small businesses, Congress has come together and done something tremendous — given themselves an additional month to solve a problem that they created" Gerrity said.
"I want to celebrate, but it shouldn't take an army of lobbyists and tens of millions of dollars for Congress to protect small businesses from Congress," he added.
Other, smaller brands face a potential supply-chain squeeze on the horizon.
For now, retailers can keep selling the drinks and consumers can continue buying them, but distributors may become increasingly reluctant to replenish inventory while Congress debates the category's future.
"Many distributors are requiring documentation stipulating manufacturers will take back and reimburse them financially for any product unable to be sold due to regulatory changes," said Gerrity. "This is an unprecedented situation, and nobody wants to get left holding the bag."
Bullock said Cann is making a bet that Congress will reach an agreement on regulation, and is building inventory in anticipation of continued demand.
High rise for THC beveragesMany consumers have found THC-infused beverages to be a welcome alternative to alcohol, in particular because they contain lower levels of the psychoactive compound than traditional marijuana products do. The industry's opponents in Congress, however, argue that uncertainty around the safety of the relatively new beverages makes a ban the safest option.
Rep. Andy Harris, R-Md., has been among the leading House Republicans pushing to bar hemp products from being sold, arguing that intoxicating hemp products are unregulated and pose risks to children.
The debate extends beyond hemp-derived beverages to other intoxicating products sold under the hemp label.
Other critics in Congress have focused on products that can be inhaled and high-potency candy products, as well as the lack of THC caps and testing requirements for those products. They have also expressed concerns about items containing synthetic cannabinoids.
Bullock, however, said the beverage industry's goal isn't to preserve a regulatory vacuum, but rather set up new rules governing the products similar to the alcohol industry.
"We're winning against an abolishing argument," he said, adding that Congress is "not worried" about drinks containing lower-milligram dosages of THC.
Every time Congress extends the deadline, businesses question how much product they should make for distributors, making it hard for them to plan ahead, Bullock said.
For consumers like Fabian who can see the beverages as both a recreational and wellness option, the stakes are more immediate.
"If there is a responsible way to regulate it, I absolutely think that is the way to go," she said.
DALLAS--(BUSINESS WIRE)--Tenet Healthcare Corporation (NYSE: THC) is scheduled to present at the Wells Fargo Healthcare Conference on Wednesday, September 9, 2026, beginning at 12:45 p.m. Eastern Time. A live webcast and audio archive of the event may be accessed through the investor relations section of Tenet's website at www.tenethealth.com/investors. The replay will be available for 30 days. About Tenet Healthcare Tenet Healthcare Corporation (NYSE: THC) is a diversified healthcare services.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Tenet Healthcare (THC - Free Report) Founded in 1967 and headquartered in Dallas, TX, Tenet Healthcare Corp., is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida. The company has investments in other health care companies and is one of the largest investor-owned health care delivery systems in the United States.
THC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.95; value investors should take notice.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $2.99 to $20.60 per share. THC boasts an average earnings surprise of +22.7%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, THC should be on investors' short list.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Tenet Healthcare (THC - Free Report) . THC is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Investors will also notice that THC has a PEG ratio of 0.81. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. THC's PEG compares to its industry's average PEG of 1.53. Over the past 52 weeks, THC's PEG has been as high as 1.30 and as low as 0.55, with a median of 0.81.
Investors should also recognize that THC has a P/B ratio of 3.07. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.63. Within the past 52 weeks, THC's P/B has been as high as 3.18 and as low as 1.75, with a median of 2.55.
Finally, investors should note that THC has a P/CF ratio of 7.51. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. THC's current P/CF looks attractive when compared to its industry's average P/CF of 8.87. Over the past 52 weeks, THC's P/CF has been as high as 7.76 and as low as 2.83, with a median of 4.42.
These are just a handful of the figures considered in Tenet Healthcare's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that THC is an impressive value stock right now.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, August 25:
Slide Insurance Holdings, Inc. (SLDE - Free Report) : This insurance company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing nearly 8% over the last 60 days.
Slide has a price-to-earnings ratio (P/E) of 6.01, compared with 14.40 for the industry. The company possesses a Value Score of A.
Leggett & Platt, Incorporated : This engineered components and products company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 16.7% over the last 60 days.
Leggett & Platt has a price-to-earnings ratio (P/E) of 8.98, compared with 14.70 for industry. The company possesses a Value Score of A.
Tenet Healthcare Corporation (THC - Free Report) : This diversified healthcare services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.5% over the last 60 days.
Tenet has a price-to-earnings ratio (P/E) of 13.93, compared with 22.85 for the S&P 500. The company possesses a Value Score of A.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Value score and how it is calculated here.
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Tenet Healthcare (THC - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
Here are three of the most important factors that make the stock of this hospital operator a great growth pick right now.
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Tenet is 25.7%, investors should actually focus on the projected growth. The company's EPS is expected to grow 20.1% this year, crushing the industry average, which calls for EPS growth of -8.3%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Tenet is 20.1%, which is higher than many of its peers. In fact, the rate compares to the industry average of 17.9%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 11.5% over the past 3-5 years versus the industry average of 3.9%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Tenet have been revising upward. The Zacks Consensus Estimate for the current year has surged 20.8% over the past month.
Bottom LineTenet has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Tenet is a potential outperformer and a solid choice for growth investors.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Tenet Healthcare (THC - Free Report) .
Tenet currently has an average brokerage recommendation (ABR) of 1.30, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 22 brokerage firms. An ABR of 1.30 approximates between Strong Buy and Buy.
Of the 22 recommendations that derive the current ABR, 17 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 77.3% and 13.6% of all recommendations.
Brokerage Recommendation Trends for THC
Check price target & stock forecast for Tenet here>>>
While the ABR calls for buying Tenet, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is THC a Good Investment?Looking at the earnings estimate revisions for Tenet, the Zacks Consensus Estimate for the current year has increased 19.8% over the past month to $20.16.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Tenet. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Tenet may serve as a useful guide for investors.
Key Takeaways Tenet Healthcare's hospital adjusted admissions rose 2.6%, while revenue per admission increased 3.3%.Hospital adjusted EBITDA jumped 22.3% to $762 million, lifting the margin to 18% from 15.6%.Management expects $2.67-$2.81 billion in 2026 Hospital adjusted EBITDA despite exchange revenue pressure. Tenet Healthcare Corporation’s (THC - Free Report) second-quarter 2026 results show why its Hospital Operations segment remains an important earnings driver. Despite pressure from weaker exchange enrollment, the segment delivered stronger volumes, better revenue per patient and meaningful margin improvement, giving investors a reason to remain optimistic about the earnings outlook.
Hospital adjusted admissions increased 2.6% year over year, while revenue per adjusted admission rose 3.3%. This combination is encouraging because THC is benefiting from both healthy patient demand and a better mix of services. The improvement in revenue per admission reflects its focus on higher-acuity care, while stronger commercial revenues are helping support top-line growth.
The hospital segment is translating this momentum into stronger profitability. Hospital adjusted EBITDA jumped 22.3% to $762 million, significantly faster than revenue growth, while the margin expanded to 18% from 15.6% a year ago. This suggests its cost-management efforts are helping convert operational growth into stronger profits.
However, exchange weakness remains a caution. Exchange revenues fell 17% in the second quarter of 2026 and are expected to remain under pressure. Still, continued volume growth, better acuity and cost discipline should help offset some of that weakness. The company’s $2.67-$2.81 billion 2026 Hospital adjusted EBITDA guidance signals confidence in continued underlying improvement, positioning the segment as a potential near-term tailwind for THC’s earnings.
Peer PerformanceTenet is not the only one benefiting from healthy demand for hospital care. Healthcare peers, including Universal Health Services, Inc. (UHS - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) , also reported solid hospital volume and revenue growth in the second quarter of 2026.
Universal Health delivered strong hospital performance, with acute-care adjusted admissions rising 2.9%. UHS’ net revenue per adjusted admission increased 3.0%, while same-facility acute-care revenues grew 8.2%, reflecting continued strength across its hospital operations.
HCA Healthcare posted solid hospital growth in the second quarter of 2026, with same-facility equivalent admissions increasing 2.7%. HCA’s revenue per equivalent admission also rose 6.4%, pointing to healthy demand and a favorable patient mix.
THC’s Price Performance, Valuation & EstimatesShares of Tenet Healthcare have gained 56.4% over the past year compared with the industry's 28% growth over the same period.
Image Source: Zacks Investment Research
From a valuation standpoint, THC trades at a forward price-to-earnings ratio of 13.43X, up from the industry average of 11.28X. THC carries a Value Scoreof A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for THC’s 2026 earnings is pegged at $20.16 per share, implying a 20.1% jump from the year-ago period’s level.
Image Source: Zacks Investment Research
THC currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Top-ranked CNC, THC, FTNT, U and GS show strong potential to deliver earnings beats this season. Positive Earnings ESP, high Zacks Rank and surprise history boost the odds of earnings surprises. A strong earnings beat often fuels stock gains, making these five names worth watching before results. It is not surprising that before an earnings season, every investor looks for stocks that can beat market expectations. This is because investors always try to position themselves ahead of time and look to tap stocks that are high-quality in nature.
In this regard, we ran a screener that yielded stocks Centene (CNC - Free Report) , Tenet Healthcare (THC - Free Report) , Fortinet (FTNT - Free Report) , Unity Software (U - Free Report) and The Goldman Sachs Group (GS - Free Report) as the likely winners on the earnings beat potential.
Why Is a Positive Earnings Surprise So Important?Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though apparently looks good) doesn’t tell you if earnings growth has been exhibiting a decelerating trend.
Also, seasonal fluctuations sometimes come into play. If a company’s Q1 is seasonally weak and Q4 strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading while judging the true health of a company.
On the other hand, after much brainstorming and analysis of companies’ financials and initiatives, Wall Street analysts project earnings of companies. They in fact club their insights and a company’s guidance when deriving an earnings estimate.
Thus, outperforming that estimate is almost equivalent to beating the company’s own expectation as well as the market perception. And if the margin of earnings surprise is big, it typically drives the stock higher right after the release. Thus, more than anything else, an earnings surprise can push a stock higher.
How to Find Stocks That Can Beat?Now, finding stocks that have the potential to beat on the bottom line may be investors’ dream but not an easy job. One way to do this is to look at the earnings surprise history of the company.
An impressive track record in this regard generally acts as a catalyst in sending a stock higher. It indicates the company’s ability to surpass estimates. And investors generally believe that the company will apply the same secret sauce to execute yet another earnings beat in its next release.
The Winning StrategyIn order to shortlist stocks that are likely to come up with an earnings surprise, we chose the following as our primary screening parameters.
Last EPS Surprise greater than or equal to 10%: Stocks delivering positive surprise in the last quarter tend to surprise again.
Average EPS Surprise in the last four quarters greater than 20%: We lifted the bar for outperformance slightly higher by setting the average earnings surprise for the last four quarters at 20%.
Average EPS Surprise in the last two quarters greater than 20%: This points to a more consistent surprise history and makes the case for another surprise even stronger.
In addition, we place a few other criteria that push up the chance of a positive surprise.
Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) rating can get through.
Earnings ESP greater than zero: A stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for an earnings beat to happen, as per our proven model.
In order to zero in on those that have long-term growth potential and high trading liquidity, we have added the following parameters too:
Next 3–5 Years Estimated EPS Growth (Per Year) greater than 10%: Solid expected earnings growth exhibits the stock’s long-term growth prospects.
Average 20-day Volume greater than 100,000: High trading volume implies that the stocks have adequate liquidity.
A handful of criteria has narrowed down the universe from over 7,700 stocks to only 16.
Here are five out of 16 stocks:
Centene: The Zacks Rank #1 company has established itself as a national leader in healthcare services. You can see the complete list of today’s Zacks #1 Rank stocks here.
The average earnings surprise of CNC for the past four quarters is 151.28%.
Tenet Healthcare: The Zacks Rank #1 company is an investor-owned healthcare services company, which owns and operates general hospitals and related healthcare facilities for urban and rural communities in numerous states, and has offices in California and Florida.
The average earnings surprise of THC for the past four quarters is 22.70%.
Fortinet:The Zacks Rank #1 company is a leader in cybersecurity, driving the convergence of networking and security.
The average earnings surprise of FTNT for the past four quarters is 20.34%.
Unity Software: The company provides a platform to develop, deploy and grow games and interactive 3D experiences across mobile, PC, console and extended reality. The stock has a Zacks Rank #2.
The average earnings surprise of U for the past four quarters is 12.54%.
The Goldman Sachs Group: It is a leading global financial holding company providing investment banking, securities, investment management, and consumer banking services to a diversified client base. The stock has a Zacks Rank #1.
The average earnings surprise of GS for the past four quarters is 20.42%.
Shares of Tenet Healthcare (THC - Free Report) have been strong performers lately, with the stock up 34.1% over the past month. The stock hit a new 52-week high of $270.57 in the previous session. Tenet has gained 34.4% since the start of the year compared to the 3% move for the Zacks Medical sector and the 12.6% return for the Zacks Medical - Hospital industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 23, 2026, Tenet reported EPS of $6.12 versus consensus estimate of $4.08.
For the current fiscal year, Tenet is expected to post earnings of $19.85 per share on $22.17 in revenues. This represents a 18.3% change in EPS on a 4.03% change in revenues. For the next fiscal year, the company is expected to earn $19.59 per share on $22.61 in revenues. This represents a year-over-year change of -1.29% and 2.01%, respectively.
Valuation MetricsTenet may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Tenet has a Value Score of A. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 13.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.5X. On a trailing cash flow basis, the stock currently trades at 9.6X versus its peer group's average of 7.4X. Additionally, the stock has a PEG ratio of 1.08. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Tenet an interesting choice for value investors.
Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Tenet currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Tenet meets the list of requirements. Thus, it seems as though Tenet shares could have potential in the weeks and months to come.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Tenet Healthcare (THC - Free Report) is a stock many investors are watching right now. THC is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.
We also note that THC holds a PEG ratio of 0.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. THC's PEG compares to its industry's average PEG of 1.56. Within the past year, THC's PEG has been as high as 1.30 and as low as 0.55, with a median of 0.81.
Investors should also recognize that THC has a P/B ratio of 3.07. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. THC's current P/B looks attractive when compared to its industry's average P/B of 3.67. Within the past 52 weeks, THC's P/B has been as high as 3.18 and as low as 1.75, with a median of 2.55.
Finally, investors will want to recognize that THC has a P/CF ratio of 7.51. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. THC's current P/CF looks attractive when compared to its industry's average P/CF of 8.96. THC's P/CF has been as high as 7.76 and as low as 2.83, with a median of 4.42, all within the past year.
These are only a few of the key metrics included in Tenet Healthcare's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, THC looks like an impressive value stock at the moment.
