Tenet Healthcare Corporation (THC) Hits Fresh High: Is There Still Room to Run?

The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 23, 2026, Tenet reported EPS of $6.12 versus consensus estimate of $4.08.

For the current fiscal year, Tenet is expected to post earnings of $19.85 per share on $22.17 in revenues. This represents a 18.3% change in EPS on a 4.03% change in revenues. For the next fiscal year, the company is expected to earn $19.59 per share on $22.61 in revenues. This represents a year-over-year change of -1.29% and 2.01%, respectively.

Valuation Metrics

Tenet may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Tenet has a Value Score of A. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 13.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.5X. On a trailing cash flow basis, the stock currently trades at 9.6X versus its peer group's average of 7.4X. Additionally, the stock has a PEG ratio of 1.08. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Tenet an interesting choice for value investors.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Tenet currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Tenet meets the list of requirements. Thus, it seems as though Tenet shares could have potential in the weeks and months to come.

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This article originally published on Zacks Investment Research (zacks.com).

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