Stock Price & Analysis

Based on the analysis of Tenet Healthcare Corporation (THC), the stock is currently facing headwinds due to Medicaid funding concerns and broader market trends. While some analysts maintain a Buy rating, the stock's recent decline and negative news suggest caution. It may be advisable to hold THC stock at this time, monitoring for potential recovery once uncertainties clear.

The price prediction for THC stock in 2025 is expected to range between $115 and $175. This forecast is based on current technical indicators and analyst sentiment. The stock is currently showing bearish momentum with a negative MACD, but analyst price targets suggest potential upside.

The S1 support level for THC Stock is $118.99 ,The R1 resistant level for THC Stock is $128.16.

As of the end of day on 2025-03-17, the price of THC Stock was $122.27.

The target price for THC Stock according to analyst rating is 170.50, with the highest price target at 185.00 and the lowest at 140.00. Analysts have a Strong Buy rating on THC Stock overall.

The market cap of THC is $11.7B.

Analysis and Insights

Valuation Metrics:

Tenet Healthcare (THC) currently exhibits a P/E ratio of 21.38, which is higher than the industry average of 15-20, suggesting potential overvaluation. The EV/EBITDA ratio of 7.16 further indicates a premium valuation compared to peers.

Financial Performance:

• Revenue: Total revenue has shown fluctuations, with a slight decline in Q4 2024, raising concerns about growth consistency.
• Net Income: Net income has been inconsistent, with a notable drop in Q4 2024, pointing to potential profitability challenges.

Debt and Liquidity:

• Debt-to-Equity Ratio: At 226.34%, this is significantly high, indicating substantial debt and increased financial risk.
• Current Ratio: Barely above 1 at 1.45, suggesting possible liquidity challenges.

Market Sentiment:

• Stock Price: A 1.05% decline in the regular market indicates investor concerns.
• News Impact: Reports of Medicaid funding cuts could negatively impact financial stability, though TD Cowen's Buy rating highlights strategic growth potential.

Conclusion:

While THC's high valuation metrics and inconsistent financials suggest overvaluation, positive analyst outlooks provide some optimism. Investors should exercise caution, considering both the financial risks and potential growth areas.

Tenet Healthcare Corporation is a diversified healthcare services company. The Company’s care delivery network includes USPI Holding Company, Inc. (USPI), which operates or has ownership interests in ambulatory surgery centers and surgical hospitals. The Company also operates acute care and specialty hospitals, as well as other outpatient facilities, including surgical hospitals, and ambulatory surgery centers (ASC), among others. The Company operates through two segments: Hospital Operations and Services, and Ambulatory Care. The Hospital Operations and Services segment, which is comprised of acute care and specialty hospitals, a network of employed physicians and ancillary outpatient facilities, as well as the revenue cycle management and value-based care services that the Company provide to hospitals, health systems, physician practices, employers, and other clients. The Ambulatory Care segment, which is comprised of USPI’s ASCs and surgical hospitals.

Price Prediction for THC Stock by 2030

Based on current trends and analysis, THC stock is predicted to reach $200 by 2030. This projection is supported by Tenet Healthcare's strategic expansion of ambulatory surgical centers and its focused hospital portfolio, which aligns with growing demand for outpatient services. Additionally, positive analyst sentiment, including a $175 price target from TD Cowen, suggests confidence in the company's growth potential.

THC has a total of 78144 employees.