Tenet Healthcare (NYSE:THC) Stock, Quote.Headers.trade-ideas

Tenet Healthcare

Tenet Healthcare is a Dallas-based healthcare services organization. It operates a collection of hospitals (about 50 as of July 2024) and over 500 ambulatory surgery centers and other outpatient facilities across the U.S., primarily in the South. Through its Conifer segment, Tenet also provides revenue cycle management solutions.

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ENSG

The Ensign Group, Inc. (NASDAQ: ENSG) announced that it has bought the operations of a nursing facility in Overland Park, KS. It has also acquired the operations of seven nursing facilities in Colorado. All these buyouts (with long-term, triple net leases) had an effective date of Sept. 1, 2024. 

Ensign Adds 8 Facilities in Kansas &amp; Colorado to Expand Footprint

Tenet Healthcare Corporation (NYSE: THC) shares have returned 24.6% in the past three months, outperforming both the hospital industry and the S&amp;P 500 Index. Over this timeframe, the industry and the S&amp;P 500 Indexhave gained 20.8% and 6.4%, respectively. 

Tenet Stock Rises 24.6% in 3 Months: Is This Your Buy Signal?

DavidEinhorn.Midjourney

Entertainment

Media

Brighthouse Financial, Inc. - Common Stock

CEIX

GRBK

Billionaire David Einhorn explains why he believes the market is fundamentally broken and how it&#39;s affecting smaller companies and ETFs.

Billionaire Hedge Fund Manager David Einhorn Says Stock Market Is Fundamentally Broken: Here&#39;s Why

Tenet Healthcare Corporation Common Stock

Tenet Healthcare Corp

THC BIOMED INTL LTD ORD by THC BioMed Intl Ltd.

THC Biomed International Ltd

TH International Limited - Ordinary shares

TH International Ltd

Thunder Bridge Capital Partners IV, Inc. - Class A Common Stock

Thunder Bridge Capital Partners IV Inc

Thunder Bridge Capital Partners IV, Inc. - Unit

Thunder Bridge Capital Partners IV, Inc. - Warrant

THC THERAPEUTICS INC by THC Therapeutics, Inc.

THC Therapeutics Inc

Spinnaker ETF Series Cannabis ETF

Tenet Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THC#NYSE">THC</a>) has outperformed the market over the past 5 years by 32.02% on an annualized basis producing an average annual return of 45.31%. Currently, Tenet Healthcare has a market capitalization of $15.14 billion. 
Buying $100 In THC: If an investor had bought $100 of THC stock 5 years ago, it would be worth $634.25 today based on a price of $158.01 for THC at the time of writing.
<h3>Tenet Healthcare's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1726245154_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $100 In This Stock 5 Years Ago, You Would Have $600 Today

The Ensign Group, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ensg#NASDAQ">ENSG</a>) announced that it has bought the operations of a nursing facility in Overland Park, KS. It has also acquired the operations of seven nursing facilities in Colorado. All these buyouts (with long-term, triple net leases) had an effective date of Sept. 1, 2024.&nbsp;
The 102-bed unit in Kansas, named Prairie Ridge Health and Rehabilitation, boosts ENSG&#39;s footprint in the state. The acquisition comes at an opportune time, as the company is experiencing significant growth in the state over the last year.
The series of acquisitions in Colorado includes the 106-bed Desert Willow Health and Rehabilitation Center in Pueblo, 133-bed Junction Creek Health and Rehabilitation Center in Durango, 104-bed Pelican Pointe Health and Rehabilitation Center in Windsor, 100-bed Riverbend Health and Rehabilitation Center in Loveland, 100-bed Broadview Health and Rehabilitation Center in Greeley, 107-bed Westlake Lodge Health and Rehabilitation Center in Greeley and 110-bed Linden Place Health and Rehabilitation Center in Longmont.
The acquisition deals have increased Ensign&#39;s portfolio to encompass 323 healthcare operations spanning 14 states. Of the total, 29 also have senior living operations. The company, along with its subsidiaries like Standard Bearer, now owns 122 real estate properties.
ENSG boasts a strong inorganic growth story. The company remains committed to pursuing opportunities for acquiring real estate and leasing both successful and struggling skilled nursing, senior living and other healthcare-related operations. As the number of facilities rises, revenues from skilled services are expected to increase, supported by higher occupancy rates and patient days, indicating robust growth in profits and the top line. This is reflected in the estimates.
<h2>ENSG&#39;s 2024 Estimates</h2>
The Zacks Consensus Estimate for Ensign&#39;s 2024 earnings indicates 14.1% year-over-year growth to $5.44 per share. It beat earnings estimates in each of the past four quarters, with an average surprise of 1.4%. Also, the consensus mark for 2024 revenues indicates a 13.1% jump from a year ago.
<h2>Price Performance</h2>
Shares of Ensign have jumped 23% in the past three months compared with the industry&#39;s 20.9% growth.
<h2>Zacks Rank &amp; Other Key Picks</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/ff/76571.jpg?v=2074871970" />
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #2 (Buy). Investors can look at some other top-ranked stocks in the broader Medical&nbsp;space, like Universal Health Services, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uhs#NYSE">UHS</a>), Tenet Healthcare Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/thc#NYSE">THC</a>) and Quest Diagnostics Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dgx#NYSE">DGX</a>). While Universal Health and Tenet Healthcare currently sport a Zacks Rank #1 (Strong Buy) each, Quest Diagnostics carries a Zacks Rank #2.
The Zacks Consensus Estimate for Universal Health Services&#39; 2024 bottom line suggests 50.8% year-over-year growth. UHS witnessed two upward estimate revisions over the past month against no movement in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 14.6%.
The Zacks Consensus Estimate for Tenet Healthcare&#39;s 2024 bottom line is pegged at $10.70 per share, which indicates 53.3% growth from a year ago. During the past month, THC witnessed two upward estimate revisions against none in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 58.5%.
The Zacks Consensus Estimate for Quest Diagnostics&#39; 2024 full-year earnings implies a 2.1% increase from the year-ago reported figure. DGX beat earnings estimates in each of the last four quarters, with an average surprise of 3.3%. The consensus mark for its current-year revenues is pegged at $9.6 billion, which indicates a 3.3% year-over-year increase.
<a href="https://www.zacks.com/stock/news/2331595/ensign-adds-8-facilities-in-kansas-colorado-to-expand-footprint?cid=CS-BENZ-FT-analyst_blog|company_news_medical_sector-2331595">To read this article on Zacks.com click here.</a>

Ensign Adds 8 Facilities in Kansas & Colorado to Expand Footprint

Tenet Healthcare Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/thc#NYSE">THC</a>) shares have returned 24.6% in the past three months, outperforming both the hospital industry and the S&amp;P 500 Index. Over this timeframe, the industry and the S&amp;P 500 Indexhave gained 20.8% and 6.4%, respectively.&nbsp;
Currently priced at $163.87, the stock is just 1% below its 52-week high. This proximity underscores investor confidence and market optimism about this hospital company&#39;s prospects. Moreover, the stock is trading above its 50-day and 200-day moving averages, signaling strong upward momentum.
<h2>3-Month Price Performance</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/02/75772.jpg?v=812194338" style="border-style:solid; border-width:1px; height:310px; width:600px" />
Image Source: Zacks Investment Research
<h2>Decoding THC&#39;s Bright Prospects</h2>
The growing senior population and increasing prevalence of diseases are expected to drive long-term demand for hospital services. Tenet Healthcare is well-positioned to benefit from this trend through strategic acquisitions and the development of new facilities. These expansion efforts aim to help Tenet capture more market share in a highly fragmented healthcare market, which will boost its adjusted admissions, emergency room visits and hospital surgeries.
Improving labor market conditions and effective staffing solutions are allowing the company to hire more workers and reopen services that were earlier shut down due to pandemic-related challenges. This increased capacity is expected to meet the rising demand for healthcare services. The company&#39;s strong second-quarter results reflect this positive growth trend.
Tenet&#39;s robust Q2 performance led it to raise its 2024 forecast. Net operating revenues from the Hospital segment are now expected to be between $16.3 billion and $16.5 billion, up from the previous range of $15.9 billion to $16.1 billion. Additionally, adjusted EBITDA is now projected to be between $3.825 billion and $3.975 billion, compared to the earlier estimate of $3.5 billion to $3.7 billion.
<h2>THC&#39;s Strategic Efforts</h2>
By the end of the second quarter, Tenet had stakes in 520 ambulatory surgery centers and 24 surgical hospitals. The company expects its transformative efforts to boost margins and free cash flow while creating a diversified business mix that can thrive in any political or regulatory environment. This approach will help reduce risks for investors.
Tenet Healthcare is focusing more on ambulatory surgery centers to tap into the rising demand for outpatient services. By leveraging its partnership with United Surgical Partners International, the company aims to expand its network, enhance operational efficiency, and improve profit margins.
Strategic investments in artificial intelligence-enabled technologies are set to enhance both clinical and administrative workflows, boosting overall efficiency. These advancements will likely reduce costs, shorten patient wait times and significantly improve the patient experience.
Alongside favorable industry trends, THC&#39;s focus on operational efficiency and rising net revenue per caseare expected to drive further profit growth, which is reflected by the revised estimates. Also, it doesn&#39;t shy away from divesting non-core and unprofitable business units to repay debt, maintain financial liquidity and make higher-return investments.
<h2>Estimate Revision Favoring THC Stock</h2>
Reflecting the positive sentiment around Tenet, the Zacks Consensus Estimate for earnings per share has seen upward revisions. The consensus estimate for 2024 adjusted earnings for THC is currently pegged at $10.70 per share, indicating a 53.3% year-over-year surge. The consensus mark for 2025 suggests a further 2.4% jump. It beat earnings estimates in each of the past four quarters, with an average surprise of 58.5%. The consensus estimate for 2024 and 2025 revenues suggests 1.4% and 3.8% year-over-year growth, respectively.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/ae/75774.jpg?v=1359469431" style="border-style:solid; border-width:1px; height:310px; width:600px" />
Image Source: Zacks Investment Research
<h2>THC: A Value-Driven Choice</h2>
Despite the recent growth in stock price, Tenet is trading at a discount compared to the industry average. It presents a compelling investment opportunity with its attractive forward 12-month price-to-earnings ratio of 15.07X, lower than the industry average of 16.19X. The company has a Value Score of A.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/3c/75775.jpg?v=344075325" style="border-style:solid; border-width:1px; height:310px; width:600px" />
Image Source: Zacks Investment Research
In comparison, its peers like HCA Healthcare, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hca#NYSE">HCA</a>) and Universal Health Services, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uhs#NYSE">UHS</a>) are currently trading at forward 12-month price-to-earnings of 16.43X and 13.91X, respectively.
<h2>Final Verdict: Buy THC Now</h2>
With the stock currently trading at a discount and benefiting from efficiency-enhancing initiatives and favorable industry trends, Tenet appears to have significant growth potential. Investors may consider accumulating more shares, as improving labor market conditions and higher admissions are expected to provide additional support for growth. The upward revisions in estimates are suggesting a promising outlook ahead.
As such, Tenet currently sports a Zacks Rank #1 (Strong Buy).
<a href="https://www.zacks.com/stock/news/2328485/tenet-stock-rises-24-6-in-3-months-is-this-your-buy-signal?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2328485">To read this article on Zacks.com click here.</a>

Tenet Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THC#NYSE">THC</a>) has outperformed the market over the past 15 years by 3.8% on an annualized basis producing an average annual return of 16.01%. Currently, Tenet Healthcare has a market capitalization of $15.68 billion. 
Buying $1000 In THC: If an investor had bought $1000 of THC stock 15 years ago, it would be worth $9,318.34 today based on a price of $163.63 for THC at the time of writing.
<h3>Tenet Healthcare's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1724772627_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $1000 In This Stock 15 Years Ago, You Would Have $9,300 Today

<a href="https://www.benzinga.com/topic/david-einhorn">Billionaire hedge fund manager David Einhorn </a>explained in a CNBC interview why he sees the current market as &#8220;fundamentally broken&#8221; and the potential ramifications
In the<a href="https://www.youtube.com/watch?v=p627nXh8UYo"> interview</a> a few months ago with CNBC&#8217;s Scott Wapner, Einhorn asserted that investors are not rewarding opportunistic smaller companies with capital, instead overinflating large companies that comprise the biggest ETFs.
&nbsp;"When I say that the market is broken, what I'm saying is there is not enough money that is being dedicated to investing, trying to identify undervalued companies and reward companies with new capital that have good opportunities for growth," Einhorn said. 
The effect of this, Einhorn explained, is that wealth managers end up buying overvalued assets causing valuations to move further away from their fair value rather than moving closer to it. Einhorn, who founded and runs Greenlight Capital, also argued that the largest ETF issuers, like Vanguard and BlackRock, deny shareholders the ability to improve the conditions of companies or request changes. This is because the ETF issuers have become the largest stakeholders of many mega-cap companies, but remain passive on shareholder votes and meetings. See Also: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/04/38099167/greenlights-david-einhorn-is-loading-up-on-gold-as-a-hedge-against-something-not-so-good">Greenlight&#8217;s David Einhorn Is Loading Up On Gold As A Hedge Against Something &#8216;Not So Good Happening&#8217;</a>
"Once you have the largest shareholder in every major important company be a passive fund, shareholder activism becomes merely impossible to improve corporate governance," Einhorn said. Another issue Einhorn pointed out was the lack of IPOs, despite favorable market conditions. Einhorn's biggest positions, according to Greenlight's latest 13F filing, are Green Brick Partners Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GRBK#NYSE">GRBK</a>), Consol Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CEIX#NYSE">CEIX</a>), Brighthouse Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHF#NYSE">BHF</a>) and Tenet Healthcare Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THC#NYSE">THC</a>), <a href="https://hedgefollow.com/funds/Greenlight+Capital">according to HedgeFollow.</a>
Read Next: <a href="https://www.benzinga.com/markets/equities/24/08/40489714/traders-raise-bets-on-aggressive-rate-cuts-as-us-economy-sees-818-000-jobs-revised-away-7-etfs-r"> • Traders Raise Bets On Aggressive Rate Cuts As US Economy Sees 818,000 Jobs Revised Away: 7 ETFs React To Employment Data</a>
The image was created using artificial intelligence MidJourney.<a href="https://hedgefollow.com/funds/Greenlight+Capital"> </a><a href="https://hedgefollow.com/funds/Greenlight+Capital"> </a>

Billionaire Hedge Fund Manager David Einhorn Says Stock Market Is Fundamentally Broken: Here's Why

Cantor Fitzgerald analyst Sarah James reiterates Tenet Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THC#NYSE">THC</a>) with a Overweight and maintains $168 price target.

Price Target

Reiteration

Cantor Fitzgerald Reiterates Overweight on Tenet Healthcare, Maintains $168 Price Target

Analysts' ratings for Tenet Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THC#NYSE">THC</a>) over the last quarter vary from bullish to bearish, as provided by 17 analysts.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">8</td>
<td style="text-align: right;">9</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $155.59, a high estimate of $197.00, and a low estimate of $112.00. This current average reflects an increase of 14.78% from the previous average price target of $135.56. 
<img src="https://www.benzinga.com/files/images/story/2024/1723644050_0.png" alt="price target chart" />
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
A comprehensive examination of how financial experts perceive Tenet Healthcare is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>A.J. Rice</td>
<td>UBS</td>
<td>Raises</td>
<td>Buy</td>
<td>$197.00</td>
<td>$180.00</td>
</tr>
<tr>
<td>Jamie Perse</td>
<td>Goldman Sachs</td>
<td>Raises</td>
<td>Buy</td>
<td>$173.00</td>
<td>$156.00</td>
</tr>
<tr>
<td>Stephen Baxter</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Overweight</td>
<td>$175.00</td>
<td>$145.00</td>
</tr>
<tr>
<td>Andrew Mok</td>
<td>Barclays</td>
<td>Raises</td>
<td>Overweight</td>
<td>$171.00</td>
<td>$156.00</td>
</tr>
<tr>
<td>Jason Cassorla</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Buy</td>
<td>$171.00</td>
<td>$139.00</td>
</tr>
<tr>
<td>John Ransom</td>
<td>Raymond James</td>
<td>Raises</td>
<td>Strong Buy</td>
<td>$175.00</td>
<td>$130.00</td>
</tr>
<tr>
<td>David Macdonald</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$170.00</td>
<td>$155.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Raises</td>
<td>Overweight</td>
<td>$168.00</td>
<td>$112.00</td>
</tr>
<tr>
<td>David Macdonald</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$155.00</td>
<td>$130.00</td>
</tr>
<tr>
<td>Andrew Mok</td>
<td>Barclays</td>
<td>Raises</td>
<td>Overweight</td>
<td>$156.00</td>
<td>$147.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$112.00</td>
<td>$112.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$112.00</td>
<td>$112.00</td>
</tr>
<tr>
<td>Sarah James</td>
<td>Cantor Fitzgerald</td>
<td>Maintains</td>
<td>Overweight</td>
<td>$112.00</td>
<td>$112.00</td>
</tr>
<tr>
<td>Pito Chickering</td>
<td>Deutsche Bank</td>
<td>Raises</td>
<td>Buy</td>
<td>$155.00</td>
<td>$150.00</td>
</tr>
<tr>
<td>Lisa Gill</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$140.00</td>
<td>$107.00</td>
</tr>
<tr>
<td>Pito Chickering</td>
<td>Deutsche Bank</td>
<td>Raises</td>
<td>Buy</td>
<td>$150.00</td>
<td>$126.00</td>
</tr>
<tr>
<td>Michael Ha</td>
<td>Baird</td>
<td>Announces</td>
<td>Outperform</td>
<td>$153.00</td>
<td>-</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Tenet Healthcare. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Tenet Healthcare compared to the broader market.</li>
<li>Price Targets: Gaining insights, analysts provide estimates for the future value of Tenet Healthcare's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Tenet Healthcare's market standing. Stay informed and make data-driven decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/THC/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Tenet Healthcare analyst ratings.</a>
<h2>Delving into Tenet Healthcare's Background</h2>
Tenet Healthcare is a Dallas-based healthcare services organization. It operates a collection of hospitals (about 50 as of July 2024) and over 500 ambulatory surgery centers and other outpatient facilities across the U.S., primarily in the South. Through its Conifer segment, Tenet also provides revenue cycle management solutions.
<h3>Tenet Healthcare: A Financial Overview</h3>
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Positive Revenue Trend: Examining Tenet Healthcare's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.41% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.
Net Margin: Tenet Healthcare's net margin excels beyond industry benchmarks, reaching 5.08%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Tenet Healthcare's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.48% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Tenet Healthcare's ROA excels beyond industry benchmarks, reaching 0.89%. This signifies efficient management of assets and strong financial health.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 3.7, caution is advised due to increased financial risk.
<h2>The Core of Analyst Ratings: What Every Investor Should Know</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

The Analyst Landscape: 17 Takes On Tenet Healthcare

UBS analyst A.J. Rice maintains Tenet Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THC#NYSE">THC</a>) with a Buy and raises the price target from $180 to $197.

UBS Maintains Buy on Tenet Healthcare, Raises Price Target to $197

Tenet Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THC#NYSE">THC</a>) has outperformed the market over the past 5 years by 35.69% on an annualized basis producing an average annual return of 48.84%. Currently, Tenet Healthcare has a market capitalization of $14.64 billion. 
Buying $1000 In THC: If an investor had bought $1000 of THC stock 5 years ago, it would be worth $7,511.80 today based on a price of $152.79 for THC at the time of writing.
<h3>Tenet Healthcare's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1723581031_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$1000 Invested In Tenet Healthcare 5 Years Ago Would Be Worth This Much Today

Tenet Healthcare's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THC#NYSE">THC</a>) short percent of float has fallen 21.99% since its last report. The company recently reported that it has 3.59 million shares sold short, which is 4.79% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.61 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Tenet Healthcare Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1723052718_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Tenet Healthcare has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Tenet Healthcare's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Tenet Healthcare's peer group average for short interest as a percentage of float is 6.46%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

How Is The Market Feeling About Tenet Healthcare?

Investors with a lot of money to spend have taken a bearish stance on Tenet Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THC#NYSE">THC</a>).
And retail traders should know.
We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with THC, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 14 options trades for Tenet Healthcare.
This isn't normal.
The overall sentiment of these big-money traders is split between 35% bullish and 42%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $40,882, and 13, calls, for a total amount of $438,450.
<h3>Expected Price Movements</h3>
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $135.0 to $160.0 for Tenet Healthcare over the recent three months. 
<h3>Insights into Volume &amp; Open Interest</h3>
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Tenet Healthcare's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Tenet Healthcare's significant trades, within a strike price range of $135.0 to $160.0, over the past month.
<h3>Tenet Healthcare Option Activity Analysis: Last 30 Days</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1722880855_0.png" alt="Options Call Chart" />
<h3>Largest Options Trades Observed:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th style="text-align: right;">Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>THC</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>08/16/24</td>
<td>$2.35</td>
<td>$2.05</td>
<td>$2.3</td>
<td>$150.00</td>
<td>$45.9K</td>
<td>1.6K</td>
<td style="text-align: right;">209</td>
</tr>
<tr>
<td>THC</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>08/16/24</td>
<td>$2.85</td>
<td>$1.85</td>
<td>$1.8</td>
<td>$135.00</td>
<td>$40.8K</td>
<td>920</td>
<td style="text-align: right;">227</td>
</tr>
<tr>
<td>THC</td>
<td>CALL</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>01/17/25</td>
<td>$14.6</td>
<td>$13.4</td>
<td>$13.9</td>
<td>$145.00</td>
<td>$40.3K</td>
<td>920</td>
<td style="text-align: right;">78</td>
</tr>
<tr>
<td>THC</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$15.4</td>
<td>$13.9</td>
<td>$14.0</td>
<td>$145.00</td>
<td>$39.2K</td>
<td>920</td>
<td style="text-align: right;">78</td>
</tr>
<tr>
<td>THC</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$16.8</td>
<td>$14.3</td>
<td>$15.0</td>
<td>$145.00</td>
<td>$36.0K</td>
<td>920</td>
<td style="text-align: right;">49</td>
</tr>
</tbody>
</table>

<h3>About Tenet Healthcare</h3>
Tenet Healthcare is a Dallas-based healthcare services organization. It operates a collection of hospitals (about 50 as of July 2024) and over 500 ambulatory surgery centers and other outpatient facilities across the U.S., primarily in the South. Through its Conifer segment, Tenet also provides revenue cycle management solutions.
After a thorough review of the options trading surrounding Tenet Healthcare, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
<h3>Where Is Tenet Healthcare Standing Right Now?</h3>
<ul>
<li>With a volume of 1,535,704, the price of THC is up 3.39% at $146.56. </li>
<li>RSI indicators hint that the underlying stock may be approaching overbought.</li>
<li>Next earnings are expected to be released in 84 days.</li>
</ul>
<h3>Expert Opinions on Tenet Healthcare</h3>
5 market experts have recently issued ratings for this stock, with a consensus target price of $153.6.
<ul>
<li>An analyst from Cantor Fitzgerald has revised its rating downward to Overweight, adjusting the price target to $112. </li>
<li>An analyst from Truist Securities downgraded its action to Buy with a price target of $170. </li>
<li>An analyst from Barclays persists with their Overweight rating on Tenet Healthcare, maintaining a target price of $156. </li>
<li>An analyst from Truist Securities persists with their Buy rating on Tenet Healthcare, maintaining a target price of $155. </li>
<li>Maintaining their stance, an analyst from Raymond James continues to hold a Strong Buy rating for Tenet Healthcare, targeting a price of $175. </li>
</ul>
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Tenet Healthcare, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.

Options

Check Out What Whales Are Doing With THC

Guidance

Tenet Healthcare Reaffirms Its Latest Fy24 Adjusted EBITDA Outlook Range Included In Its Q2 Earnings Release

The transaction will include five hospitals &ndash; Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Walker Baptist Medical Center, Shelby Baptist Medical Center, Citizens Baptist Medical Center &ndash; as well as affiliated physician practices and other related operations. Brookwood Baptist Health will remain a joint venture with Baptist Health System. The after-tax proceeds total approximately&nbsp;$790 million.
Additionally, under the agreement, Tenet&#39;s Conifer Health Solutions subsidiary will enter into a new and expanded ten-year contract to provide revenue cycle management services for the Birmingham hospitals and related operations.
The transaction is expected to be completed in the fall of 2024, subject to customary regulatory approvals, clearances, and closing conditions.

Asset Sales

Tenet Healthcare Reports Sale Of Its 70% Majority Ownership Interest In Brookwood Baptist Health In Birmingham To Orlando Health For $910M Cash

Stocks hitting their 52-week high and delivering consistent performance offer attractive opportunities to investors while building a portfolio. This is because stocks near that level are perceived to be winners. However, stocks touching a new 52-week high are often predisposed to profit-taking, resulting in pullbacks and trend reversals.
Moreover, given the high price, investors often wonder if the stock is overpriced. While the speculations are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced.
In fact, investors might lose out on top gainers in an attempt to avoid the steep prices.
Stocks such as Universal Health Services (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uhs#NYSE">UHS</a>), Tenet Healthcare Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/thc#NYSE">THC</a>), Century Communities (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ccs#NYSE">CCS</a>) and Magnite (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mgni#NASDAQ">MGNI</a>) are expected to maintain their momentum and keep scaling new highs. Extensive information on a stock is necessary to understand whether or not there is scope for further upside.
Here, we discuss a strategy to find the right stocks. The strategy borrows from the basics of momentum investing. This technique bets on &quot;buy high, sell higher.&quot;
<h3>52-Week High: A Good Indicator</h3>
Many times, stocks that hit a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.
In fact, overvaluation is natural for most of these stocks as investors&#39; focus (or willingness to pay a premium) has helped them reach the level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions that encouraged investors to bet on these stocks could keep them motivated if there is no tangible negative. In other words, the momentum might continue.
Also, when a string of positive developments dominates the market, investors find their under-reaction unwarranted, even if there are no company-specific driving forces.
<h3>Setting the Right Filters</h3>
We ran a screen to zero in on 52-week high stocks (trading near the high level) that hold tremendous upside potential. The screen includes parameters to shortlist stocks with strong earnings growth expectations, sturdy value metrics and price momentum.
Moreover, the screen filters stocks that are relatively undervalued compared to their peers in terms of earnings as well as sales, ensuring the continuation of their rally for some time.
<h3>Current Price/52 Week High &gt;= .8</h3>
This is the ratio between the current price and the highest price at which the stock has traded in the past 52 weeks. A value greater than 0.11 implies that the stock is trading within 20% of its 52-week high range.
<h3>% Change Price &ndash; 4 Weeks &gt; 0</h3>
It ensures that the stock price has moved north over the past four weeks.
<h3>% Change Price &ndash; 12 Weeks &gt; 0</h3>
This metric guarantees a continued upward price momentum for the stock over the past three months as well.
<h3>Price/Sales &lt;= XIndMed</h3>
The lower, the better.
<h3>P/E using F(1) Estimate &lt;= XIndMed</h3>
This metric measures the amount an investor puts into a company to obtain one dollar of earnings. It narrows down the list of stocks to those that are undervalued compared to the industry.
<h3>One-Year EPS Growth F(1)/F(0) &gt;= XIndMed</h3>
This helps choose stocks that have higher growth rates than the industry. This is a meaningful indicator, as decent earnings growth adds to investor optimism.
<h3>Zacks Rank =1</h3>
No screening is complete without the Zacks Rank, which has proved its worth since its inception. It is a fundamental truth that stocks with a Zacks Rank #1 (Strong Buy) have always managed to brave adversities and beat the market average.
<h3>Current Price &gt;= 8</h3>
This parameter will help screen stocks that are trading at $8 or higher.
<h3>Volume &ndash; 20 days (shares) &gt;= 100000</h3>
The inclusion of this metric ensures that there is a substantial volume of shares, so trading is easier.
Here are four stocks of the 11 that made it through the screen:
Universal Health Services owns and operates (through its subsidiaries) acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers and radiation oncology centers.
Universal Health&#39;s Acute Care and Behavioral Health segments have been pivotal in driving top-line growth, fueled by expansions in licensed bed capacity. The company anticipates positive impacts on its Acute Care unit from Medicaid supplemental programs.
Strategic buyouts have played a significant role in augmenting its growth trajectory by broadening its portfolio of facilities. It beat second-quarter earnings estimates on Acute Care strength. The company maintains a robust liquidity position, enabling it to pursue growth initiatives and distribute capital through buybacks and dividends. It has resorted to a constant dividend payout of 20 cents per share since 2019.
The Zacks Consensus Estimate for UHS&#39; 2024 earnings has moved north by 9.2% to $15.03 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14.58%.
Tenet Healthcare is a major investor-owned healthcare services company operating general hospitals and related facilities across multiple states, with key offices in California and Florida.
Tenet&#39;s revenue growth is fueled by increasing patient admissions, while its strategy of acquisitions and alliances aims to expand the scale of its business through inorganic growth. It has been undertaking divestitures to eliminate unprofitable businesses and focus on allocating capital to higher return-generating investments. Its performance in Ambulatory Care is driving the results.
Net operating revenues for the Ambulatory Care unit are likely to be between $4.325-$4.475 billion in 2024. Tenet&#39;s financial performance is further enhanced by contractual rate increases in its Conifer joint venture. This combination of organic growth, strategic acquisitions, operational optimization and strong performance in key business units positions Tenet Healthcare for continued success in the healthcare services sector.
The Zacks Consensus Estimate for THC&#39;s 2024 earnings has moved north by 16.8% to $10.21 per share in the past 30 days. The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 58.48%.
Century Communities is a home building and construction company. Its activities comprise land acquisition, development and entitlements, and the acquisition, development, construction, marketing, and sale of various single-family detached and attached residential home projects.
The company&#39;s initiative of offering affordable homes along with several incentive offerings, including lot premiums, interest rate buydowns and discounts on base home prices, is expected to be a tailwind. Also, its focus on building homes on a spec basis bodes well. This initiative of the company helps in direct cost control, sparks the availability of quick move-ins and assures buyers of financing certainty.
Furthermore, despite the improving inventory of existing home sales, the company is likely to benefit from increasing new home contracts, thanks to its improved cycle times and increased level of home starts. The company&#39;s focus on affordability, along with the reduced cycle times and cost-reduction initiatives, positions it well for the rest of 2024.
The Zacks Consensus Estimate for 2024 earnings has moved north by 3.1% to $10.43 per share in the past 30 days. CCS surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 35.57%.
Magnite provides sell-side advertising platform. The company&#39;s omnichannel advertising platform enables publishers to monetize across all auction types and formats, including CTV, desktop display, video, audio and mobile.
Magnite intends to continuously invest in providing seamless services to its clients from different domains. The combination of SpringServe and Magnite streaming SSP offers a complete solution that includes ad serving, yield monetization, audience capabilities and a host of tools to protect the consumer viewing experience and honor complex rules of competitive separation and frequency capping.
ClearLine, the company&#39;s self-service direct buying platform, is continuing to gain traction with numerous agencies and multiple brands testing and transacting through it. Contributions from a robust partner base, including the likes of Sling, Hulu, Pluto, Tubi, Discovery and Fox, and device manufacturing companies like Roku and Samsung, are expected to have contributed to MGNI&#39;s revenues in the upcoming quarters.
The Zacks Consensus Estimate for MGNI&#39;s 2024 earnings has remained steady at 82 cents per share in the past 30 days. The company beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same twice, the average surprise being 252.78%.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
<a href="https://www.zacks.com/stock/news/2314000/4-stocks-trading-near-52-week-high-that-can-climb-further?cid=CS-BENZ-FT-analyst_blog|rw-2314000">To read this article on Zacks.com click here.</a>

Small Cap

MGNI

4 Stocks Trading Near 52-Week High That Can Climb Further

Humana Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hum#NYSE">HUM</a>) posted second-quarter 2024 adjusted earnings per share of $6.96, which surpassed the Zacks Consensus Estimate by 18.2%. However, the bottom line fell 22.1% year over year.&nbsp;
Adjusted revenues improved 14.2% year over year to $29.4 billion. The top line beat the consensus mark by 2.6%.&nbsp;
The quarterly results benefited from strong premium growth and increased service revenues, driven by expanding Medicare Advantage membership and an improved Primary Care business. However, the upside was partly offset by rising benefits expenses and a continued decline in the company&#39;s group commercial medical and standalone prescription drug plan membership. Nevertheless, a hiked 2024 guidance for individual Medicare Advantage membership growth seems commendable as Humana derives a major portion of its premiums from this business line.
<div class="chart_embed">
<h3>Humana Inc. Price, Consensus and EPS Surprise</h3>
<img alt="Humana Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/5e/1722442508.png" style="height:265px; width:587px" title="" />
Humana Inc. price-consensus-eps-surprise-chart | Humana Inc. Quote
</div>
<h3>Operational Update</h3>
Humana&#39;s total premiums of $28.1 billion advanced 10.4% year over year, higher than the Zacks Consensus Estimate of $27.2 billion and our estimate of $26.8 billion.&nbsp;
Services revenues rose 12.5% year over year to $1.1 billion, beating the consensus mark of $988.5 million and our estimate of $984.7 million. Investment income was $298 million, up 8.8% year over year. The metric, however, lagged the consensus estimate of $304.7 million and our estimate of $363.7 million.
The benefits expense ratio deteriorated 270 basis points (bps) year over year to 89% due to increased Medicare Advantage medical cost trends.&nbsp;
Total operating expenses escalated 12.2% year over year to $28.4 billion, higher than our estimate of $27.1 billion. The year-over-year increase was mainly due to elevated benefits expenses and operating costs. Meanwhile, the operating cost ratio improved 100 bps year over year to 10.8%, thanks to a boost in scale as a result of expanding Medicare Advantage membership coupled with administrative cost efficiencies.
HUM&#39;s operating income of $1.14 billion, which tumbled 20.5% year over year, outpaced our estimate of $1.06 billion.
<h3>Segmental Update</h3>
<h3>Insurance</h3>
The segment recorded adjusted revenues of $28.4 billion in the second quarter, which grew 14.1% year over year, attributable to improved per-member Medicare premiums, and membership growth in Medicare Advantage business and state-based contracts.&nbsp;
Adjusted operating income dropped 29.5% year over year to $826 million. Adjusted benefits expense ratio of 89.4% deteriorated 280 bps year over year. Adjusted operating cost ratio improved 80 bps year over year to 8.4%.&nbsp;
Total medical membership of the segment was 16.3 million as of Jun 30, 2024, which fell 4.8% year over year and came lower than the Zacks Consensus Estimate of 16.33 million.
<h3>CenterWell</h3>
The segment&#39;s revenues advanced 9.2% year over year to $4.9 billion, higher than the Zacks Consensus Estimate of $4.8 billion and our estimate of $4.7 billion. The unit was aided by an expanding value-based home care model and improved revenues derived from the company&#39;s Primary Care business.&nbsp;
Adjusted operating income of $394 million rose 16.9% year over year. The operating cost ratio improved 60 bps year over year to 92%.
<h3>Financial Update (As of Jun 30, 2024)</h3>
Humana exited the second quarter with cash and cash equivalents of $5.5 billion, which climbed 17.2% from the 2023-end level. Total assets of $50.1 billion increased 6.4% from the figure at 2023 end.&nbsp;
Long-term debt amounted to $11.7 billion, up 15% from the figure as of Dec 31, 2023. Short-term debt was $1.1 billion. Debt to capitalization came in at 43.6%, which deteriorated 260 bps from the prior-year comparble period.
Total stockholders&#39; equity of $16.7 billion grew 2.5% from the 2023-end level.&nbsp;
HUM generated net cash from operations of $1.6 billion in the first half of 2024, which declined more than six-fold from the prior-year comparable period.
<h3>Capital Deployment Update</h3>
Humana bought back shares worth $749.6 million till Jul 30, 2024. It had a leftover share repurchase capacity of $2.93 billion as of Jul 30, 2024.
<h3>2024 Outlook Updated</h3>
Adjusted EPS is projected to be $16, which indicates a 38.7% decline from the 2023 reported figure. GAAP EPS is estimated to be $12.81 compared with the earlier mentioned $13.93. The revised guidance implies a 36% fall from the 2023 reported figure.&nbsp;
Revenues are forecast to be $116 billion, up from the prior stated $113 billion. The updated outlook indicates a 9% improvement from the 2023 reported figure. The Insurance segment&#39;s revenues are estimated to be $112 billion, up from the earlier mentioned $110 billion. Revenues of the CenterWell segment, on a GAAP basis, are expected to be $19 billion.
Management currently projects individual Medicare Advantage membership to witness growth of around 225,000 this year while the earlier view called for the metric to witness growth of roughly 150,000 members. Group Medicare Advantage membership is still expected to increase by around 45,000 members. Membership from the Medicare stand-alone PDP is estimated to decline by around 600,000. The previous view expected the metric to witness a membership decline of around 650,000.&nbsp;
The benefit ratio of the Insurance unit continues to be expected around 90%. The consolidated GAAP operating cost ratio is still anticipated at approximately 11.4%.&nbsp;
Cash flow from operations continues to be expected around $2 billion. Meanwhile, capital expenditures are still projected to be roughly $800 million.
<h3>Zacks Rank</h3>
Humana currently carries a Zacks Rank #3 (Hold).
<h3>Other Medical Sector Releases</h3>
Of the Medical sector players that have reported second-quarter 2024 results so far, the bottom-line results of Tenet Healthcare Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/thc#NYSE">THC</a>), Universal Health Services, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uhs#NYSE">UHS</a>) and The Ensign Group, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ensg#NASDAQ">ENSG</a>) beat the Zacks Consensus Estimate.
Tenet Healthcare reported second-quarter 2024 adjusted EPS of $2.31, which outpaced the Zacks Consensus Estimate by 22.2%. The bottom line soared 60.4% year over year.&nbsp; Net operating revenues of $5.103 billion inched up 0.4% year over year. The top line beat the consensus mark by 2.5%. Adjusted net income of $226 million climbed 46.8% year over year. Adjusted EBITDA was $945 million, which advanced 12.1% year over year. Adjusted EBITDA margin of 18.5% improved 190 bps year over year.
The Hospital Operations and Services segment&#39;s net operating revenues tumbled 4.3% year over year to $3.96 billion. On a same-hospital basis, net patient service revenues advanced 8.2% year over year. The Ambulatory Care segment recorded net operating revenues of $1.14 billion, which rose 21.1% year over year.&nbsp;
Universal Health reported second-quarter adjusted EPS of $4.31, which beat the Zacks Consensus Estimate by 27.9%. The bottom line rose 70.4% from the year-ago period. Net revenues amounted to $3.9 billion, which rose from $3.6 billion a year ago. The top line outpaced the consensus mark by 1.5%. Adjusted EBITDA net of NCI rose 35.9% year over year to $578.7 million. In the Acute Care Hospital Services unit, adjusted admissions (adjusted for outpatient activity) increased 3.4% year over year on a same-facility basis. Adjusted patient days rose 1.6% year over year. Net revenues stemming from Universal Health&#39;s acute care services improved 6.6% year over year on a same-facility basis.
In the Behavioral Health Care Services segment, adjusted admissions declined 0.4% year over year on a same-facility basis. Meanwhile, adjusted patient days increased 1.4% year over year, lower than our model estimate of 1.9%. On a same-facility basis, net revenues derived from the behavioral healthcare services of UHS increased 11% year over year.&nbsp;
Ensign Group reported second-quarter 2024 EPS of $1.32, which beat the Zacks Consensus Estimate by 2.3%. The bottom line increased 13.8% year over year. Operating revenues of $1.04 billion improved 12.5% year over year. The top line outpaced the consensus mark by 2%. Ensign Group&#39;s adjusted net income grew 15.3% year over year to $76.4 million.&nbsp;
Same-store occupancy improved 280 bps year over year while transitioning occupancy expanded 430 bps year over year. The Skilled Services segment&#39;s revenues rose 12.1% year over year to $991.3 million. Segment income of $122.2 million improved 4.4% year over year. Skilled nursing and campus operations of the segment totaled 272 and 29, respectively, at the second-quarter end. In the Standard Bearer unit, Rental revenues amounted to $23.4 million, which grew 17.3% year over year.
<a href="https://www.zacks.com/stock/news/2313425/humana-hum-q2-earnings-beat-on-medicare-advantage-strength?cid=CS-BENZ-FT-analyst_blog|earnings_article-2313425">To read this article on Zacks.com click here.</a>

Humana Q2 Earnings Beat on Medicare Advantage Strength

If you&#39;re interested in broad exposure to the Mid Cap Blend segment of the US equity market, look no further than the JPMorgan Diversified Return U.S. Mid Cap Equity ETF (ARCA:JPME), a passively managed exchange traded fund launched on 05/11/2016.
The fund is sponsored by J.P. Morgan. It has amassed assets over $420.30 million, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
<h2>Why Mid Cap Blend</h2>
Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. These types of companies, then, have a good balance of stability and growth potential.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
<h2>Costs</h2>
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.24%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.78%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund&#39;s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 12.30% of the portfolio. Financials and Real Estate round out the top three.
Looking at individual holdings, Vistra Corp Common Stock (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vst#NYSE">VST</a>)&nbsp;accounts for about 0.65% of total assets, followed by Tenet Healthcare Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/thc#NYSE">THC</a>) and International Paper Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ip#NYSE">IP</a>).
The top 10 holdings account for about 5.04% of total assets under management.
<h2>Performance and Risk</h2>
JPME seeks to match the performance of the Russell Midcap Diversified Factor Index before fees and expenses. The JP Morgan Diversified Factor US Mid Cap Equity Index utilizes a rules-based approach that combines risk-based portfolio construction with multi-factor security selection, including value, quality and momentum factors.
The ETF has gained about 10.33% so far this year and it&#39;s up approximately 13.09% in the last one year (as of 07/31/2024). In the past 52-week period, it has traded between $79.30 and $100.65.
The ETF has a beta of 1.04 and standard deviation of 16.74% for the trailing three-year period. With about 366 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
JPMorgan Diversified Return U.S. Mid Cap Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, JPME is a reasonable option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Mid-Cap ETF (ARCA:VO) and the iShares Core S&amp;P Mid-Cap ETF (ARCA:IJH) track a similar index. While Vanguard Mid-Cap ETF has $65.69 billion in assets, iShares Core S&amp;P Mid-Cap ETF has $88.19 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
<h2>Bottom-Line</h2>
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
<a href="https://www.zacks.com/stock/news/2312599/should-jpmorgan-diversified-return-u-s-mid-cap-equity-etf-jpme-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2312599">To read this article on Zacks.com click here.</a>

ETFs

JPMorgan Diversified Return U.S. Mid Cap Equity ETF

JPME

Should JPMorgan Diversified Return U.S. Mid Cap Equity ETF Be on Your Investing Radar?

Goldman Sachs analyst Jamie Perse maintains Tenet Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THC#NYSE">THC</a>) with a Buy and raises the price target from $156 to $173.

Goldman Sachs Maintains Buy on Tenet Healthcare, Raises Price Target to $173

Wells Fargo analyst Stephen Baxter maintains Tenet Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THC#NYSE">THC</a>) with a Overweight and raises the price target from $145 to $175.

Wells Fargo Maintains Overweight on Tenet Healthcare, Raises Price Target to $175

Barclays analyst Andrew Mok maintains Tenet Healthcare (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THC#NYSE">THC</a>) with a Overweight and raises the price target from $156 to $171.

Barclays Maintains Overweight on Tenet Healthcare, Raises Price Target to $171

Tenet Healthcare: Strong EPS Growth, But Shares Near FV (Rating Downgrade)

High-Beta stocks, characterized by high risk levels, potential for high returns and growth, are favored by investors having high-risk tolerance and seeking high returns. Thus, quality high-beta stocks Devon Energy (DVN), Marathon Oil (MRO), and Tenet Healthcare (THC) could be ideal for aggressive investors. Continue reading... The U.S. economy performed well and grew faster than expected during the second quarter of 2024, positioned it to regain speed. Increased government spending, solid gains in consumer spending, and rising investments contributed to its growth.
Given this backdrop, it could be wise to invest in fundamentally strong high-beta stocks Devon Energy Corporation (<a href="https://stocknews.com/stock/DVN/">DVN</a>), Marathon Oil Corporation (<a href="https://stocknews.com/stock/MRO/">MRO</a>), and Tenet Healthcare Corporation (<a href="https://stocknews.com/stock/THC/">THC</a>) for aggressive investors.
The U.S. economy poised a rapid growth level with its <a href="https://www.bea.gov/data/gdp/gross-domestic-product#:~:text=Real%20gross%20domestic%20product%20(GDP,to%20the%20%22advance%22%20estimate.">real gross domestic product increasing at an annual rate of 2.8%</a> in the second quarter of 2024, compared to the real GDP growth of 1.4% during the first quarter. The improvement during the second quarter largely reflected rise in consumer spending, inventory investment, and business investment.
In the second quarter, increase in consumer spending was observed in both, services and goods. The <a href="https://www.bea.gov/news/2024/gross-domestic-product-second-quarter-2024-advance-estimate#:~:text=Real%20gross%20domestic%20product%20(GDP,real%20GDP%20increased%201.4%20percent.">price index for gross domestic purchases surged 2.3%</a>, from a 3.1% increase in the previous quarter. Also, the personal consumption expenditures price index increased 2.6%, compared to the 3.4% in the first quarter.
Amid these economic tailwinds, growth investors and investors with high-risk tolerance may be interested in betting on <a href="https://www.investopedia.com/articles/markets/011216/highbeta-stocks-trade.asp#:~:text=High%20beta%20stocks%20are%20positively,can%20underperform%20in%20bear%20markets.">high-beta stocks</a> which have great potential to generate high returns but also comes with downside risks when markets fall. High-beta stocks tend to perform better than the benchmark indexes in a bull market, marking them a suitable choice for aggressive investors seeking higher returns.
Given these factors, let's delve deeper into the fundamentals of top high-beta stocks: DVN, MRO, and THC.
Devon Energy Corporation (<a href="https://stocknews.com/stock/DVN/">DVN</a>)
DVN is an independent energy company which engages in the exploration, development, and production of oil, natural gas, and natural gas liquids.
On July 8, DVN entered into a definitive purchase agreement to acquire the Williston Basin business of Grayson Mill Energy in a transaction valued at $5 billion, which consists of $3.25 billion of cash and $1.75 billion of stock to the sellers. The strategic acquisition bodes well with DVN's operations and enables it to efficiently expand oil production and operating scale.
DVN's total <a href="https://www.investopedia.com/terms/r/revenue.asp">revenues</a> increased 13.4% year-over-year to $3.92 billion for the second quarter that ended June 30, 2024. Its earnings before income taxes grew 15.9% from the year-ago value to $1.04 billion. The company's net earnings came in at $855 million, and $1.34 per share, indicating growth of 22.5% and 25.2% from the prior year's quarter, respectively.
In addition, the company's cash, cash equivalents and restricted cash were $1.17 billion as of June 30, 2024, versus $875 million as of December 31, 2023.
Street expects DVN's revenue and EPS for the fourth quarter (ending December 2024) to increase 5.3% and 4.3% year-over-year to $4.37 billion and $1.47, respectively. Furthermore, the company surpassed the consensus EPS estimates in each of the trailing four quarters.
Shares of DVN have surged marginally over the past six months to close the last trading session at $43.67.
DVN's robust growth prospects are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has a B grade for Value and Quality. Within the <a href="https://stocknews.com/category/energy-oil-gas/">Energy – Oil &amp; Gas</a> industry, DVN is ranked #16 out of 78 stocks.
<a href="https://stocknews.com/stock/DVN/">Click here</a> to access additional ratings of DVN for Stability, Sentiment, Growth and Momentum.
Marathon Oil Corporation (<a href="https://stocknews.com/stock/MRO/">MRO</a>)
MRO is an independent exploration and production company which engages in international exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas. It also produces and markets products manufactured from natural gas like liquefied natural gas and methanol.
On July 31, MRO's Board of Directors declared a dividend of $0.11 per share on the company's common stock. The dividend is payable on September 10, 2024, to stockholders of record on August 21, 2024.
MRO pays an annual dividend of $0.44, which translates to a yield of 1.59% at the current share price. Its four-year average dividend yield is 1.28%. Moreover, the company's dividend payouts have increased at a CAGR of 43.1% over the past three years.
On May 29, MRO and ConocoPhillips (COP) entered a definitive agreement under which ConocoPhillips will acquire MRO in an all-stock transaction with an enterprise value of $22.5 billion, including $5.4 billion of net debt. The acquisition is expected to offer a unique combination of added scale, resilience and long-term durability to MRO.
For the second quarter that ended June 30, 2024, MRO's total revenues and other income increased 12.8% year-over-year to $1.71 billion. Its income from operations grew 15.2% from the year-ago value to $523 million. The company's adjusted net income came in at $357 million and $0.63 per share, up 21% and 31.2% from the prior year's quarter, respectively.
Furthermore, the company's adjusted free cash flow was $364 million for the period.
Analysts expect MRO's revenue and EPS for the third quarter (ending September 2024) to increase 0.8% and 0.3% year-over-year to $1.83 billion and $0.77, respectively. Moreover, the company has topped the consensus EPS estimates in three of the four trailing quarters.
MRO's shares have gained 15.4% over the past six months and 6% over the past year to close the last trading session at $27.67.
MRO's sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has a B grade for Quality. Within the Energy – Oil &amp; Gas industry, MRO is ranked #21 among 81 stocks.
In addition to the POWR Ratings we've stated above, we also have MRO ratings for Momentum, Growth, Stability, Sentiment, and Value. Get all MRO ratings <a href="https://stocknews.com/stock/MRO/">here</a>.
Tenet Healthcare Corporation (<a href="https://stocknews.com/stock/THC/">THC</a>)
THC operates as a diversified healthcare services company. The company operates through two segments: Hospital Operations and Services; and Ambulatory Care. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies.
On August 5, THC entered into a definitive agreement with Orlando Health for the sale of its 70% majority ownership interest in Brookwood Baptist Health in Birmingham for nearly $910 million in cash.
The transaction included five hospitals – Brookwood Baptist Medical Center, Princeton Baptist Medical Center, Walker Baptist Medical Center, Shelby Baptist Medical Center, Citizens Baptist Medical Center.
THC's net operating revenues for the second quarter that ended June 30, 2024, increased marginally from the prior year's quarter to $5.10 billion. The company's net income available to Tenet common shareholders came in at $259 million and $2.64 per share, up 110.6% and 129.6% from the prior year's quarter, respectively.
Furthermore, the company's adjusted EBITDA increased 12.1% year-over-year to $945 million.
Analysts expect THC's EPS for the fiscal year (ending December 2024) to increase 53.5% year-over-year to $10.71 and its revenue is estimated to increase 1.5% year-over-year to $20.85 billion for the same year. Moreover, the company surpassed the consensus EPS and revenue estimates in each of the trailing four quarters.
THC's stock has soared 73.7% over the past six months and 120.8% over the past year to close the last trading session at $160.50.
THC's POWR Ratings reflect its robust outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
THC has a B grade for Growth, Value, and Sentiment. It is ranked #2 among the 10 stocks in the A-rated <a href="https://stocknews.com/category/hospitals/">Medical - Hospitals</a> industry.
<a href="https://stocknews.com/stock/THC/">Click here</a> to access additional THC ratings for Quality, Stability, and Momentum.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

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DVN shares were trading at $44.72 per share on Friday afternoon, up $1.05 (+2.40%). Year-to-date, DVN has gained 0.41%, versus a 18.81% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/dvn-mro-thc-3-high-beta-stocks-for-aggressive-investors/>3 High-Beta Stocks for Aggressive Investors</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

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In a report released today, Andrew Mok CFA from Barclays maintained a Buy rating on Tenet Healthcare (THC – Research Report), with a price target o...

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