This Day On The Street
Continue to site
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

Tenet Healthcare May Benefit From Obamacare

As of Dec. 31, it operated 50 hospitals, including four academic medical centers and one critical access hospital, with a combined total of 13,453 licensed beds primarily serving urban and suburban communities in 11 states of the United States; and 98 diagnostic imaging centers, ambulatory surgery centers, and urgent care centers, as well as one emergency department in 12 states of the United States. Tenet was founded in 1967 and is headquartered in Dallas. (The preceding comes from the Yahoo! Finance profile.)

Factors to Consider

Technical Indicators Provided by

The stock now rates both a 100% Barchart technical buy signal and a Trend Spotter buy signal. The price is above its 20-, 50- and 100-day moving averages, hit seven new highs and is up 8.52% in the last month. computes a technical support level at $23.38, and the stock has a 14-day Relative Strength Index of 64.11%. It recently traded at $26.87 with a 50-day moving average of 23.68.

Fundamental Factors:

With risk comes reward, and in the past bad debts from the uninsured have hit the bottom line. TheStreet rated the stock a D+, and the financial strength was a low C. Although Wall Street analysts think revenue will be down 3.80% this year, they expect revenue to be up 3.7% next year.

Earnings estimates are the bright spot, and a 60.1% increase in earnings is forecast for this year, followed by another 11.8% increase next year. Earnings are expected to increase by 11.73% annually for the next five years. The price-to-earnings ratio is a reasonable 17.51 in a 15 P/E market. Analysts think if their numbers are correct, investors could see an annual total return in the 25% - 30% range over the next five years.

Investor Interest:

Wall Street brokerage firms are following this stock, and 14 firms have assigned 21 analysts to monitor the numbers. They have released three strong buy, two buy and 16 hold recommendations on this stock. The individual investor over on Motley Fool has given the stock an 84% vote of confidence to beat the market. Short interest has been climbing recently, to more than 8.5 million shares, and I think the recent price movement will cause a lot of short-sellers to cover their positions.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CI $138.54 -1.00%
UNH $131.68 -0.30%
THC $31.69 -1.77%
WLP $136.01 1.43%
AAPL $93.74 -1.15%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs