This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Taking a Look at Tenet

Old wounds are showing some healing signs at Tenet (THC).

Most investors expect the hospital chain to report another quarterly loss when it publishes its latest results on Tuesday. But fans could push the company's stock higher if the pain seems manageable and the chances for recovery have started to improve.

Tenet has spent years trying to cure massive legal headaches. Now, the company has endured two criminal trials and, some feel, could soon ink a long-awaited government settlement as a result.

In the meantime, CRT Capital analyst Sheryl Skolnick has a fair value rating on Tenet's stock -- but with a positive bias -- heading into Tuesday morning's first-quarter earnings release.

On the one hand, Skolnick calls it "blindingly obvious" that Tenet will report weak volumes like many of its healthier peers. Indeed, she believes that negative industry trends, coupled with what she calls the Tenet penalty, could have sent patient admissions down 2% from a year ago. She also expects the company to report a loss of 4 cents a share -- or double the consensus estimate -- for the quarter. She continues to brace for negative cash flow, after capital expenditures, as well.

On the other hand, Skolnick suggests that investors have grown somewhat numb to poor results from the company.

"The stock probably won't go down if the results are in line" with investors' low expectations, she said. "The stock is more likely to be stable to up -- especially if investors get the sense that the company is making progress toward a settlement."

Back in February, Tenet's stock hit a multiyear low of $6.89 a share as the latest criminal trial dragged on. However, the stock recently bounced above $9 for the first time in months after a jury deadlocked over whether the defendants had illegally bribed physicians in exchange for patient referrals. The stock has since weakened, though, closing at $7.96 on Monday.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,161.95 +29.98 0.18%
S&P 500 2,002.57 +3.59 0.18%
NASDAQ 4,559.3570 +6.5980 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs