Tenet Healthcare Corporation (THC) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Tenet Healthcare (THC)? Shares have been on the move with the stock up 13.4% over the past month. The stock hit a new 52-week high of $174.14 in the previous session. Tenet Healthcare has gained 36.1% since the start of the year compared to the -4.8% move for the Zacks Medical sector and the 21.2% return for the Zacks Medical - Hospital industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 29, 2025, Tenet reported EPS of $4.36 versus consensus estimate of $3.11 while it beat the consensus revenue estimate by 1.64%.For the current fiscal year, Tenet is expected to post earnings of $12.69 per share on $20.9 billion in revenues. This represents a 6.82% change in EPS on a 1.12% change in revenues. For the next fiscal year, the company is expected to earn $13.61 per share on $21.93 billion in revenues. This represents a year-over-year change of 7.24% and 4.95%, respectively.Valuation MetricsTenet may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Tenet has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 13.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.7X. On a trailing cash flow basis, the stock currently trades at 8.2X versus its peer group's average of 7.6X. Additionally, the stock has a PEG ratio of 1.26. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Tenet currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.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 fits the bill. Thus, it seems as though Tenet shares could have potential in the weeks and months to come.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks