Bull of the Day: Tenet Healthcare (THC)

Tenet Healthcare THC, a current Zacks Rank #1 (Strong Buy), is a healthcare services company that owns and operates general hospitals and related healthcare facilities for urban and rural communities in numerous states.The company’s earnings outlook has shifted positively across the board, a bullish sign for near-term share movement.Image Source: Zacks Investment ResearchIn addition to favorable earnings estimate revisions, the stock resides in the Zacks Medical – Hospital industry, currently ranked in the top 10% of all Zacks industries. Let’s take a closer look at how the company currently stacks up.Tenet Healthcare Raises Guidance Tenet Healthcare shares have been scorching-hot in 2024, up 115% and even outperforming many of the Mag 7 members. Favorable quarterly results have helped keep shares moving higher all year long, moving higher again following the latest print that revealed an adjusted EBITDA guidance upgrade.Image Source: Zacks Investment ResearchThe company’s cash-generating abilities also saw a positive boost throughout the latest period, with free cash flow of $1.8 billion nearly 80% higher than the year-ago figure. And to the likes of shareholders, the company continued to aggressively buy back its shares throughout the period, scooping up $124 million worth.As shown below, THC has regularly bought its shares back over recent years, helping establish a small floor.Image Source: Zacks Investment ResearchThe valuation picture here isn’t expensive, with the current 14.1X forward 12-month earnings multiple a few ticks above the 12.2X five-year median but otherwise nowhere near the 18.7X five-year high. And the current PEG ratio works out to 0.7X, reflective of both growth and value. The stock sports a Style Score of ‘A’ for Value.Saum Sutaria, CEO, wrapped up the quarterly release with a bullish statement:‘Our businesses continue to produce strong results and generate robust free cash flow with same store revenue growth and profitability well above our expectations due to the focused execution of our strategy and disciplined operations,’He continued –‘We have furthered our portfolio transformation and are well-positioned to deliver enhanced value to our patients, physician partners, and shareholders.’Bottom LineInvestors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.Tenet Healthcare Corp. THC would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tenet Healthcare Corporation (THC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks