Track market-moving stories before they get noisy

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.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

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 assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

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.

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.

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.

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.

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.

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.

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 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%.

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.

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:

Core Natural Resources, Inc. (CNR - Free Report) : This coal mining company has seen the Zacks Consensus Estimate for its current year earnings increasing 44.1% over the last 60 days.

ORIX Corporation (IX - Free Report) : This financial services company has seen the Zacks Consensus Estimate for its current year earnings increasing 55.1% over the last 60 days.

Tenet Healthcare Corporation (THC - Free Report) : This healthcare services company has seen the Zacks Consensus Estimate for its current year earnings increasing 9.8% over the last 60 days.

Solstice Advanced Materials, Inc. (SOLS - Free Report) : This specialty chemicals company has seen the Zacks Consensus Estimate for its current year earnings increasing 9.5% over the last 60 days.

CarMax Inc (KMX - Free Report) : This used vehicle retail company has seen the Zacks Consensus Estimate for its current year earnings increasing 13.8% over the last 60 days

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On August 05, 2026, Tenet Healthcare Corp (THC) shares rose by 3.3%, bringing the current price to $261.74. Over the past year, the stock has experienced signif

Posted by Defense World Staff on Aug 5th, 2026

Amundi increased its holdings in shares of Tenet Healthcare Corporation (NYSE:THC – Free Report) by 6.6% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 71,308 shares of the company’s stock after purchasing an additional 4,404 shares during the quarter. Amundi owned 0.08% of Tenet Healthcare worth $13,457,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also made changes to their positions in the company. NewEdge Advisors LLC grew its holdings in shares of Tenet Healthcare by 6.1% in the first quarter. NewEdge Advisors LLC now owns 2,890 shares of the company’s stock valued at $389,000 after purchasing an additional 166 shares in the last quarter. Jones Financial Companies Lllp increased its position in shares of Tenet Healthcare by 299.1% during the first quarter. Jones Financial Companies Lllp now owns 1,700 shares of the company’s stock worth $229,000 after acquiring an additional 1,274 shares during the period. Sivia Capital Partners LLC purchased a new position in Tenet Healthcare in the second quarter valued at $290,000. Quantbot Technologies LP acquired a new stake in Tenet Healthcare in the 2nd quarter valued at about $65,000. Finally, Jump Financial LLC purchased a new stake in shares of Tenet Healthcare during the second quarter worth approximately $1,083,000. 95.44% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes A number of equities research analysts have recently weighed in on the stock. Raymond James Financial set a $270.00 price objective on shares of Tenet Healthcare in a report on Monday, July 27th. Piper Sandler set a $308.00 price target on Tenet Healthcare in a report on Monday, July 27th. UBS Group raised their target price on Tenet Healthcare from $288.00 to $308.00 and gave the stock a “buy” rating in a research report on Monday, July 27th. Morgan Stanley upped their price target on Tenet Healthcare from $254.00 to $274.00 and gave the company an “overweight” rating in a report on Monday, July 27th. Finally, Barclays raised their price objective on shares of Tenet Healthcare from $240.00 to $271.00 and gave the stock an “overweight” rating in a report on Friday, July 24th. Seventeen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $271.00.

Check Out Our Latest Stock Analysis on THC

Tenet Healthcare Stock Performance Shares of THC opened at $253.81 on Wednesday. The firm has a market cap of $21.86 billion, a PE ratio of 9.79, a price-to-earnings-growth ratio of 0.95 and a beta of 1.23. The company’s 50 day simple moving average is $195.15 and its 200-day simple moving average is $200.11. The company has a current ratio of 1.41, a quick ratio of 1.35 and a debt-to-equity ratio of 2.00. Tenet Healthcare Corporation has a 12-month low of $157.58 and a 12-month high of $262.68.

Tenet Healthcare (NYSE:THC – Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The company reported $6.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.26 by $1.86. Tenet Healthcare had a net margin of 10.27% and a return on equity of 26.76%. The company had revenue of $6.04 billion for the quarter, compared to the consensus estimate of $5.43 billion. During the same period last year, the firm posted $4.02 EPS. Tenet Healthcare’s revenue for the quarter was up 6.8% on a year-over-year basis. Tenet Healthcare has set its FY 2026 guidance at 20.300-21.690 EPS. As a group, equities analysts predict that Tenet Healthcare Corporation will post 21.09 EPS for the current year.

Insider Buying and Selling In related news, Director Christopher S. Lynch sold 3,837 shares of the business’s stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $243.44, for a total transaction of $934,079.28. Following the sale, the director owned 9,568 shares of the company’s stock, valued at approximately $2,329,233.92. The trade was a 28.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Lisa Y. Foo sold 10,000 shares of Tenet Healthcare stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $258.03, for a total transaction of $2,580,300.00. Following the sale, the executive vice president owned 32,053 shares of the company’s stock, valued at approximately $8,270,635.59. The trade was a 23.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 33,353 shares of company stock worth $7,683,517 in the last three months. Company insiders own 0.97% of the company’s stock.

Tenet Healthcare Company Profile (Free Report)

Tenet Healthcare Corporation (NYSE: THC) is a diversified American healthcare services company that owns and operates acute care hospitals and a broad range of outpatient facilities. Its portfolio includes general acute-care hospitals, specialty hospitals, ambulatory surgery centers, urgent care and diagnostic imaging centers, and other ancillary service locations. Tenet’s operations are oriented around delivering inpatient and outpatient clinical care across multiple medical specialties, with an emphasis on surgical services, emergency care, and advanced diagnostics.

In addition to facility-based care, Tenet provides integrated services designed to support clinical operations and improve patient access and care coordination.

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Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.

Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.

It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.

There are several stocks that currently pass through the screen and Tenet Healthcare (THC - Free Report) is one of them. Here are the key reasons why this stock is a great candidate.

Investors' growing interest in a stock is reflected in its recent price increase. A price change of 21.2% over the past four weeks positions the stock of this hospital operator well in this regard.

While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. THC meets this criterion too, as the stock gained 30.4% over the past 12 weeks.

Moreover, the momentum for THC is fast paced, as the stock currently has a beta of 1.23. This indicates that the stock moves 23% higher than the market in either direction.

Given this price performance, it is no surprise that THC has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.

In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped THC earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Most importantly, despite possessing fast-paced momentum features, THC is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. THC is currently trading at 0.99 times its sales. In other words, investors need to pay only 99 cents for each dollar of sales.

So, THC appears to have plenty of room to run, and that too at a fast pace.

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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, it's pretty easy to find cutting-edge growth stocks 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 on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it 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 GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. 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 13.6% this year, crushing the industry average, which calls for EPS growth of -8.7%.

Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on 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 RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable 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 17.1% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Tenet a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Tenet well for outperformance, so growth investors may want to bet on it.

Have you been paying attention to shares of Tenet Healthcare (THC - Free Report) ? Shares have been on the move with the stock up 40.4% over the past month. The stock hit a new 52-week high of $262.68 in the previous session. Tenet has gained 32.2% since the start of the year compared to the 2.8% move for the Zacks Medical sector and the 11.4% return for the Zacks Medical - Hospital industry.

What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each 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 $19.07 per share on $22.06 in revenues. This represents a 13.65% change in EPS on a 3.52% change in revenues. For the next fiscal year, the company is expected to earn $18.68 per share on $22.5 in revenues. This represents a year-over-year change of -2.07% and 1.97%, respectively.

Valuation MetricsThough Tenet has recently hit a 52-week high, what is next for Tenet? 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 they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. 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 B and A, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 13.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.8X. On a trailing cash flow basis, the stock currently trades at 9.5X versus its peer group's average of 8X. Additionally, the stock has a PEG ratio of 1.1. 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 supersedes any trend on the style score front. Fortunately, Tenet currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

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 still be poised for more gains ahead.

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Tenet Healthcare (THC - Free Report) is a stock many investors are watching right now. THC is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Investors should also note that THC holds a PEG ratio of 0.81. 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. THC's PEG compares to its industry's average PEG of 1.82. 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.

Another notable valuation metric for THC is its 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 stock's P/B looks attractive against its industry's average P/B of 3.38. Over the past 12 months, THC's P/B has been as high as 3.18 and as low as 1.75, with a median of 2.55.

Finally, our model also underscores that THC has a P/CF ratio of 7.51. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.61. 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.

Value investors will likely look at more than just these metrics, but the above data helps show that Tenet Healthcare is likely undervalued currently. And when considering the strength of its earnings outlook, THC sticks out as one of the market's strongest value stocks.

Key Takeaways THC beat Q2 earnings and revenue estimates, fueled by same-facility growth and higher patient acuity.THC raised its 2026 revenue, adjusted EBITDA, margin and adjusted EPS guidance after strong Q2 results.THC repurchased $1 billion of shares in Q2, with about $2.1 billion remaining under its authorization. Tenet Healthcare Corporation (THC - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year.

Net operating revenues advanced 6.8% year over year to $5.63 billion. The top line surpassed the consensus mark by 4.4%.

The strong quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions.

Tenet Healthcare Corporation Price, Consensus and EPS SurpriseInside THC’s Q2 PerformanceAdjusted net income of $514 million climbed 39.3% year over year.

Adjusted EBITDA rose 16.3% year over year to $1.3 billion, supported by strong same-facility revenue growth and disciplined expense management despite an unfavorable payer mix stemming from lower exchange admissions. The figure also exceeded our estimate of $1.1 billion. Adjusted EBITDA margin improved 190 basis points year over year to 23.2%.

Salaries, wages and benefits increased 3.3% year over year to $2.2 billion in the second quarter, while supply costs rose 5.6% and net other operating expenses increased 4.9%.

Q2 Segmental DetailsAmbulatory Care: The segment’s net operating revenues climbed 9.3% year over year to $1.4 billion in the quarter, driven by strong growth in consolidated same-facility net patient service revenues, contributions from facility acquisitions and an expansion of service lines. The metric topped our estimate by 1.4%.

Adjusted EBITDA was $542 million, which advanced 8.8% year over year. The metric topped our estimate by 6.6%. Adjusted EBITDA margin contracted 20 basis points year over year to 39.0%.

Hospital Operations and Services: The segment recorded net operating revenues of $4.2 billion, which increased 6% year over year, driven by higher adjusted admissions and increased acuity, partly offset by an unfavorable payer mix. The metric beat our model estimate by 5%.

Adjusted EBITDA rose 22.3% year over year to $762 million in the quarter, driven by strong same-facility revenue growth, disciplined expense management and higher Medicaid supplemental revenues. Adjusted EBITDA margin improved 240 basis points year over year to 18.0%.

THC’s Q2 Financial UpdateTenet Healthcare exited the second quarter with cash and cash equivalents of $2.2 billion, which declined from the 2025-end level of $2.9 billion. Total assets of $30.7 billion rose from the 2025-end figure of $29.7 billion.

Long-term debt, net of the current portion, amounted to $13.1 billion, down marginally from the level as of Dec. 31, 2025. The current portion of long-term debt totaled $160 million.

Total shareholders’ equity of $4.7 billion increased from the 2025-end level of $4.2 billion.

THC generated $585 million of net cash from operations, down 37.5% year over year. Free cash flows decreased 43.9% year over year to $417 million in the quarter.

THC’s Share Repurchase UpdateTHC repurchased 5.7 million common shares for approximately $1 billion in the second quarter of 2026. The board of directors authorized a $2 billion increase to the company's share repurchase program. As of July 23, 2026, it had approximately $2.1 billion remaining under its share repurchase authorization.

THC Raises 2026 OutlookNet operating revenues are projected to be in the range of $21.9-$22.5 billion, up from the prior guidance of $21.5-$22.3 billion and $21.3 billion reported in 2025. Hospital segment revenues are expected to be in the band of $16.4-$16.8 billion, up from the previous outlook of $16.0-$16.6 billion. The Ambulatory Care segment's revenue guidance remains unchanged at $5.5-$5.7 billion.

Adjusted EBITDA is now expected to be between $4.83 billion and $5.03 billion, up from the prior guidance of $4.485-$4.785 billion and $4.566 billion reported in 2025. The company also raised its adjusted EBITDA margin outlook to 22.1-22.4% from the previous 20.9-21.5%. At the midpoint, the revised guidance implies an improvement over the 2025 margin of 21.4%. Adjusted EPS for 2026 is now anticipated to be in the range of $20.30-$21.69, up from the earlier guidance of $16.38-$18.68.

Net cash provided by operating activities is now expected to be between $3.84 billion and $4.29 billion, while free cash flow is projected to be in the range of $3.14-$3.49 billion. Capital expenditures are estimated to remain between $700 million and $800 million.

Tenet Healthcare currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did Other Medical Companies Perform?Here are some stocks from the broader Medical space that have also reported their quarterly results: HCA Healthcare, Inc. (HCA - Free Report) , Elevance Health, Inc. (ELV - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) . Here's how they performed:

HCA Healthcare reported second-quarter 2026 adjusted earnings per share of $7.59, which beat the Zacks Consensus Estimate of $7.57. The bottom line advanced 11% year over year. Revenues rose 8.7% year over year to $20.2 billion. The top line was in line with the Zacks Consensus Estimate. HCA’s quarterly results benefited from increased same-facility admissions, solid revenue per equivalent admission and strong emergency room visit growth. However, declining inpatient and outpatient surgeries, along with elevated operating expenses, partially offset these positives.

Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. The top line beat the consensus mark by 2.9%. ELV’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses.

UnitedHealth Group reported second-quarter 2026 adjusted earnings per share of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion. The top line beat the consensus mark by 1.7%. UNH’s strong quarterly results were aided by growth in commercial fee-based membership and the strength witnessed in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weaker performance at Optum Health and Optum Rx, along with declining risk-based membership, partially offset these gains.

Tenet Healthcare Corporation (THC) Q2 2026 Earnings Call Transcript

Top Analyst-Rated Healthcare Stocks to Watch NowTenet Healthcare NYSE: THC raised its full-year 2026 financial outlook after reporting second-quarter results that exceeded its expectations, supported by hospital volume growth, higher-acuity services, expense-management efforts and continued strength in its ambulatory surgery business.

Second-quarter net operating revenues totaled $5.6 billion, while consolidated adjusted EBITDA rose 16.3% from a year earlier to $1.304 billion. Adjusted EBITDA margin was 23.2%, and adjusted diluted earnings per share increased 52% year over year to $6.12.

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3 Under-the-Radar Healthcare CompaniesChairman and Chief Executive Officer Dr. Saum Sutaria said the company’s first-half fundamental outperformance totaled approximately $97 million across its operating segments. “Hospital volumes and same-store revenue growth in both segments are strong,” Sutaria said, adding that margin performance benefited from technology-enabled expense initiatives implemented at the beginning of the year.

Guidance Raised for Revenue, EBITDA and Cash Flow For 2026, Tenet increased its consolidated net operating revenue outlook to a range of $21.9 billion to $22.5 billion, representing a $300 million increase at the midpoint from its previous forecast. The company raised adjusted EBITDA guidance to $4.83 billion to $5.03 billion, a $295 million increase at the midpoint.

HCA Healthcare: Temporary Setbacks, Long-Term StrengthManagement said the revised EBITDA outlook reflects roughly $100 million in fundamental outperformance during the first half and another $60 million from the expected continuation of those drivers in the second half. The company also cited contributions from ambulatory surgery acquisitions and supplemental Medicaid programs.

Adjusted free cash flow after noncontrolling interests is now projected at $1.825 billion to $2.055 billion, up $225 million at the midpoint. That outlook includes roughly $150 million of tax payments related to the Conifer transaction. Excluding those payments, the midpoint would be approximately $2.1 billion, Chief Financial Officer Sun Park said.

Hospital Segment Outperforms Despite Exchange Pressure Tenet’s hospital segment generated $762 million in adjusted EBITDA, up 22% from the second quarter of 2025, with an 18% adjusted EBITDA margin. Same-hospital inpatient adjusted admissions increased 2.6%, while revenue per adjusted admission rose 3.3% year over year.

Park said the revenue-per-admission increase reflected the company’s acuity strategy and higher supplemental Medicaid revenue, partly offset by lower exchange volumes. The company recognized $92 million of favorable out-of-period supplemental Medicaid revenue tied to prior years, compared with $70 million in the prior-year quarter. Park said Tenet would have recorded a “clean beat” even without the incremental Medicaid revenue.

Exchange revenue declined 17% from the second quarter of 2025 and accounted for about 5.5% of consolidated revenue during the quarter. Exchange admissions fell about 13.5%, according to Park, resulting in an approximately $65 million revenue headwind.

Management said the exchange decline was most pronounced in Florida, Arizona, Michigan, South Carolina and Texas. Park said the company saw exchange patients shift to uninsured status at a rate that was “pretty much one-to-one,” with uninsured volume increasing proportionately in the second quarter.

Tenet expects the exchange-market trends seen in the second quarter to continue through the rest of 2026 and did not change its assumptions for the back half of the year. Sutaria said the company has been adjusting its cost base while maintaining investments in growth initiatives.

USPI Emphasizes Higher-Acuity Procedures United Surgical Partners International, Tenet’s ambulatory surgery business, reported adjusted EBITDA of $542 million, an 8.8% increase from the prior-year quarter. Its adjusted EBITDA margin was 39%.

USPI same-facility systemwide revenue rose 5%, including a 6.3% increase in net revenue per case. Same-facility case volume declined 1.2%, which management attributed to its focus on higher-acuity care and the migration of lower-acuity procedures to office settings.

Sutaria highlighted 10% year-over-year same-store growth in total joint replacements at the company’s ambulatory surgery centers. He said USPI continues to expand into higher-acuity orthopedic procedures as well as urology, robotics, bariatrics and cardiovascular services. The company is also pursuing more complex procedures in established gastrointestinal and ophthalmology service lines.

Tenet now expects to spend more than $300 million on ambulatory surgery center mergers and acquisitions during 2026, reflecting transactions completed so far and its current pipeline of opportunities.

Cost Management and Capital Deployment In response to analyst questions, Sutaria outlined several components of Tenet’s cost-management strategy. These include traditional productivity measures, renegotiating purchased-service contracts and supply standardization, as well as clinical operating improvements involving length of stay, emergency department service levels, hospital throughput and operating-room and catheterization-lab scheduling.

The company is also using automation, artificial intelligence and its global business center to improve productivity and automate certain functions across payment operations and support structures, Sutaria said.

Tenet generated $444 million in adjusted free cash flow during the second quarter and $1.422 billion year to date. As of June 30, it had $2.17 billion of cash on hand, no outstanding borrowings under its revolving credit facility and no significant debt maturities until late 2027.

The company repurchased 5.7 million shares for $1.04 billion during the second quarter. First-half share repurchases totaled nearly 7 million shares, costing $1.36 billion. Tenet’s board authorized a further $2 billion increase to its share repurchase program, and management said it expects to remain active in buybacks through the remainder of the year.

Tenet reported a leverage ratio of 2.33 times EBITDA as of June 30, or 2.9 times EBITDA excluding noncontrolling interests. Management said capital priorities include ambulatory surgery acquisitions, hospital investments focused on higher-acuity services, share repurchases and potential debt retirement or refinancing.

About Tenet Healthcare (NYSE:THC)Tenet Healthcare Corporation NYSE: THC is a diversified American healthcare services company that owns and operates acute care hospitals and a broad range of outpatient facilities. Its portfolio includes general acute-care hospitals, specialty hospitals, ambulatory surgery centers, urgent care and diagnostic imaging centers, and other ancillary service locations. Tenet's operations are oriented around delivering inpatient and outpatient clinical care across multiple medical specialties, with an emphasis on surgical services, emergency care, and advanced diagnostics.

In addition to facility-based care, Tenet provides integrated services designed to support clinical operations and improve patient access and care coordination.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Tenet Healthcare (THC - Free Report) came out with quarterly earnings of $6.12 per share, beating the Zacks Consensus Estimate of $4.08 per share. This compares to earnings of $4.02 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +50.00%. A quarter ago, it was expected that this hospital operator would post earnings of $4.21 per share when it actually produced earnings of $4.82, delivering a surprise of +14.49%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Tenet, which belongs to the Zacks Medical - Hospital industry, posted revenues of $5.63 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.40%. This compares to year-ago revenues of $5.27 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Tenet shares have lost about 1.7% since the beginning of the year versus the S&P 500's gain of 9.6%.

What's Next for Tenet?While Tenet has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Tenet was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.22 on $5.47 billion in revenues for the coming quarter and $17.50 on $22.01 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Hospital is currently in the bottom 10% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Acadia Healthcare (ACHC - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 28.

This provider of inpatient behavioral health care services is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of -60.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Acadia Healthcare's revenues are expected to be $844.75 million, down 2.8% from the year-ago quarter.

DALLAS--(BUSINESS WIRE)--Tenet Healthcare Corporation (Tenet) (NYSE: THC) today announced its results for the quarter ended June 30, 2026. "Strong same-store revenue growth and effective expense management drove our fundamental outperformance in the second quarter of 2026 compared to our original assumptions," said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet. "We are actively navigating current industry dynamics through excellent operational execution, investments in innov.

Posted by Defense World Staff on Jul 23rd, 2026

Shares of Tenet Healthcare Corporation (NYSE:THC – Get Free Report) have been given an average recommendation of “Moderate Buy” by the twenty-one research firms that are currently covering the stock, MarketBeat Ratings reports. Four investment analysts have rated the stock with a hold recommendation and seventeen have given a buy recommendation to the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $244.8421.

Several research analysts have recently issued reports on the stock. Weiss Ratings cut shares of Tenet Healthcare from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, June 2nd. TD Cowen cut their price target on shares of Tenet Healthcare from $242.00 to $233.00 and set a “buy” rating on the stock in a report on Monday, June 22nd. Morgan Stanley set a $254.00 price objective on shares of Tenet Healthcare in a research note on Friday, May 1st. Stephens dropped their target price on shares of Tenet Healthcare from $275.00 to $260.00 and set an “overweight” rating for the company in a report on Monday, May 4th. Finally, Wells Fargo & Company boosted their price target on Tenet Healthcare from $213.00 to $231.00 and gave the company an “overweight” rating in a report on Monday, July 13th.

View Our Latest Report on Tenet Healthcare

Insider Activity at Tenet Healthcare In other news, Director Nadja West sold 3,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $177.35, for a total transaction of $532,050.00. Following the transaction, the director directly owned 24,805 shares of the company’s stock, valued at approximately $4,399,166.75. The trade was a 10.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director J Robert Kerrey sold 5,638 shares of the firm’s stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $174.52, for a total value of $983,943.76. Following the completion of the sale, the director directly owned 16,804 shares of the company’s stock, valued at $2,932,634.08. The trade was a 25.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.97% of the stock is currently owned by insiders.

Institutional Trading of Tenet Healthcare Institutional investors and hedge funds have recently bought and sold shares of the stock. Triumph Capital Management purchased a new position in shares of Tenet Healthcare during the 3rd quarter worth approximately $25,000. Activest Wealth Management bought a new stake in shares of Tenet Healthcare during the fourth quarter valued at approximately $26,000. Elyxium Wealth LLC purchased a new stake in Tenet Healthcare in the fourth quarter worth $29,000. Meeder Asset Management Inc. lifted its position in Tenet Healthcare by 146.2% during the fourth quarter. Meeder Asset Management Inc. now owns 192 shares of the company’s stock valued at $38,000 after buying an additional 114 shares during the period. Finally, Canada Pension Plan Investment Board bought a new stake in shares of Tenet Healthcare during the 2nd quarter valued at $35,000. 95.44% of the stock is currently owned by hedge funds and other institutional investors.

Tenet Healthcare Stock Down 0.3% Shares of NYSE:THC opened at $195.84 on Thursday. The stock has a market capitalization of $16.87 billion, a P/E ratio of 10.18, a price-to-earnings-growth ratio of 1.63 and a beta of 1.27. The stock’s 50-day moving average price is $184.41 and its 200-day moving average price is $197.37. The company has a current ratio of 1.36, a quick ratio of 1.30 and a debt-to-equity ratio of 1.96. Tenet Healthcare has a 12-month low of $146.60 and a 12-month high of $247.21.

Tenet Healthcare (NYSE:THC – Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $4.82 earnings per share for the quarter, beating the consensus estimate of $4.21 by $0.61. Tenet Healthcare had a return on equity of 25.55% and a net margin of 7.94%.The company had revenue of $5.37 billion during the quarter, compared to analysts’ expectations of $5.39 billion. During the same period in the prior year, the business posted $4.36 EPS. Tenet Healthcare’s quarterly revenue was up 2.6% compared to the same quarter last year. Tenet Healthcare has set its FY 2026 guidance at 16.380-18.68 EPS. On average, equities analysts anticipate that Tenet Healthcare will post 17.5 earnings per share for the current year.

About Tenet Healthcare (Get Free Report)

Tenet Healthcare Corporation (NYSE: THC) is a diversified American healthcare services company that owns and operates acute care hospitals and a broad range of outpatient facilities. Its portfolio includes general acute-care hospitals, specialty hospitals, ambulatory surgery centers, urgent care and diagnostic imaging centers, and other ancillary service locations. Tenet’s operations are oriented around delivering inpatient and outpatient clinical care across multiple medical specialties, with an emphasis on surgical services, emergency care, and advanced diagnostics.

In addition to facility-based care, Tenet provides integrated services designed to support clinical operations and improve patient access and care coordination.

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Key Takeaways Tenet Healthcare reports Q2 results on July 24, with estimates calling for 1.5% EPS and 2.3% revenue growth.THC's Ambulatory Care business is expected to benefit from same-facility revenue growth and acquisitions.Tenet Healthcare faces pressure from lower patient days, shorter stays and higher costs. Hospital operator Tenet Healthcare Corporation (THC - Free Report) is set to report second-quarter 2026 results on July 24, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $4.08 per share on revenues of $5.39 billion. 

The second-quarter earnings estimate has decreased 3 cents over the past 60 days. Yet, the bottom-line projection indicates a year-over-year increase of 1.5%. Also, the Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 2.3%.

Image Source: Zacks Investment Research

For full-year 2026, the Zacks Consensus Estimate for Tenet Healthcare’s revenues is pegged at $21.98 billion, implying a rise of 3.1% year over year. The consensus mark for 2026 earnings per share is pegged at $17.50, indicating a jump of 4.3% on a year-over-year basis.

Tenet Healthcare beat the consensus estimate for earnings in each of the trailing four quarters, with the average surprise being 20.6%, as you can see below.

Q2 Earnings Whispers for THCHowever, our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.

THC has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

What’s Shaping THC’s Q2 Results?The Zacks Consensus Estimate for adjusted patient admissions in total hospital operations suggests a 2.2% year-over-year decline. However, on the same hospital basis, the consensus estimate for adjusted patient admissions indicates a 1% increase from a year ago. The consensus mark for net patient revenues per adjusted admission in the second quarter signals a 10.2% year-over-year increase.

Meanwhile, the Ambulatory Care business is likely to have gained from strong growth in consolidated same-facility net patient service revenues, contributions from facility acquisitions and an expansion of service lines. Our model estimate for the Ambulatory Care segment’s net operating revenues suggests 7.8% growth from the prior-year quarter’s figure, whereas the consensus estimate indicates an 8.4% increase. The Zacks Consensus Estimate for adjusted EBITDA from Ambulatory Care operations suggests 5.1% year-over-year growth.

The Zacks Consensus Estimate for Hospital Operations and Services revenues for the second quarter is pegged at just a little over $4 billion, indicating a 0.1% increase from the year-ago period. However, the Zacks Consensus Estimate for adjusted EBITDA from the segment suggests a 2.8% year-over-year fall.

Both the consensus estimate and our model estimate suggest that second-quarter total hospital patient days have decreased 3% year over year. Both the Zacks Consensus Estimate and our model estimate for the average length of stay in total hospital indicate a 0.2% decrease from a year ago. Also, with increased utilization, costs are expected to have increased in the second quarter, making an earnings beat uncertain.

Stocks That Warrant a LookWhile an earnings beat looks uncertain for Tenet Healthcare, here are some companies from the broader Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

ProMIS Neurosciences, Inc. (PMN - Free Report) has an Earnings ESP of +13.30% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ProMIS’ bottom line for the to-be-reported quarter of a loss of $1.45 indicates an 80% year-over-year improvement. It has witnessed one upward revision against no downward movement over the past 60 days.

Alcon Inc. (ALC - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank of 2.

The Zacks Consensus Estimate for Alcon’s bottom line for the to-be-reported quarter indicates a 1.3% increase from a year ago. The company’s earnings beat estimates in three of the trailing four quarters and missed once, with an average surprise of 3.7%. The consensus estimate for ALC’s revenues is pegged at $2.77 billion, signaling a 7.3% increase.

Cardinal Health, Inc. (CAH - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank of 2.

The Zacks Consensus Estimate for Cardinal Health’s bottom line for the to-be-reported quarter suggests 16.4% year-over-year growth. Its earnings beat estimates in each of the past four quarters, with an average surprise of 10.3%. CAH’s revenues for the to-be-reported quarter are pegged at $65.61 billion, a 9.1% increase from the year-ago period.

Tenet Healthcare (THC - Free Report) ended the recent trading session at $194.91, demonstrating a -2.15% change from the preceding day's closing price. This change lagged the S&P 500's 1.01% loss on the day. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 1.4%.

Coming into today, shares of the hospital operator had gained 15.43% in the past month. In that same time, the Medical sector gained 5.37%, while the S&P 500 gained 0.32%.

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 July 24, 2026. The company is forecasted to report an EPS of $4.08, showcasing a 1.49% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $5.39 billion, up 2.27% from the year-ago period.

THC's full-year Zacks Consensus Estimates are calling for earnings of $17.5 per share and revenue of $21.98 billion. These results would represent year-over-year changes of +4.29% and +3.13%, respectively.

Investors should also note any recent changes to analyst estimates for Tenet Healthcare. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.61% lower. At present, Tenet Healthcare boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Tenet Healthcare is currently exchanging hands at a Forward P/E ratio of 11.38. This expresses no noticeable deviation compared to the average Forward P/E of 11.38 of its industry.

Meanwhile, THC's PEG ratio is currently 1.65. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - Hospital industry had an average PEG ratio of 1.65 as trading concluded yesterday.

The Medical - Hospital industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 42% echelons 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Tenet Healthcare (THC - Free Report) closed the most recent trading day at $204.25, moving -1.22% from the previous trading session. This change lagged the S&P 500's 0.42% gain on the day. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.29%.

Prior to today's trading, shares of the hospital operator had gained 19.4% outpaced the Medical sector's gain of 5.6% and the S&P 500's gain of 2.2%.

Investors will be eagerly watching for the performance of Tenet Healthcare in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 24, 2026. The company's upcoming EPS is projected at $4.08, signifying a 1.49% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.39 billion, up 2.27% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $17.61 per share and a revenue of $22.02 billion, indicating changes of +4.95% and +3.32%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Tenet Healthcare. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Tenet Healthcare is holding a Zacks Rank of #2 (Buy) right now.

With respect to valuation, Tenet Healthcare is currently being traded at a Forward P/E ratio of 11.74. This expresses no noticeable deviation compared to the average Forward P/E of 11.74 of its industry.

It is also worth noting that THC currently has a PEG ratio of 1.7. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - Hospital industry had an average PEG ratio of 1.7 as trading concluded yesterday.

The Medical - Hospital industry is part of the Medical sector. With its current Zacks Industry Rank of 60, this industry ranks in the top 25% of all industries, numbering over 250.

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.

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.

Over the past month, shares of this hospital operator have returned +25.2%, compared to the Zacks S&P 500 composite's +1.1% change. During this period, the Zacks Medical - Hospital industry, which Tenet falls in, has gained 20.1%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

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.

Tenet is expected to post earnings of $4.08 per share for the current quarter, representing a year-over-year change of +1.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $17.61 for the current fiscal year indicates a year-over-year change of +5%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $17.63 indicates a change of +0.2% from what Tenet is expected to report a year ago. Over the past month, the estimate has remained unchanged.

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 #2 (Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile 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.

In the case of Tenet, the consensus sales estimate of $5.39 billion for the current quarter points to a year-over-year change of +2.3%. The $22.02 billion and $22.43 billion estimates for the current and next fiscal years indicate changes of +3.3% and +1.9%, respectively.

Last Reported Results and Surprise HistoryTenet reported revenues of $5.37 billion in the last reported quarter, representing a year-over-year change of +2.8%. EPS of $4.82 for the same period compares with $4.36 a year ago.

Compared to the Zacks Consensus Estimate of $5.39 billion, the reported revenues represent a surprise of -0.36%. The EPS surprise was +14.49%.

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.

ConclusionThe 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 #2 does suggest that it may outperform the broader market in the near term.