Tenet Healthcare, Morgan Stanley: S&P Gainers

NEW YORK ( TheStreet) - Shares of Tenet Healthcare ( THC) and Morgan Stanley ( MS) were among the best-performers in the S&P 500 on Monday.

The S&P 500 rose 19.4 points, or 1.39%, to 1,416.51.

Shares of Tenet rose 5.52% to $5.54. In recent news, a lawsuit by Tenet Healthcare against Community Health Systems has been dropped. Tenet Healthcare was fending off a hostile bid from Community Health.

Jefferies analyst Arthur Henderson said hospital stocks have gotten more attractive lately. He has a buy rating on Tenet Healthcare with a $6.50 price target.

The U.S. Supreme Court is hearing oral arguments related to Obamacare starting on Monday. If the individual mandate is deemed unconstitutional, Henderson noted that many of these stocks like Tenet Healthcare will likely go down. At best, investors in these stocks should hope that everything remains the same, the analyst said.

Tenet Healthcare shares trade at an estimated price-to-earnings ratio for next year of 8.52 times; the average for health care providers is 18.8X. For comparison, both Health Net ( HNT) and Amerigroup ( AGP) have higher forward P/Es of 10.3X and 13.3X, respectively.

Eleven of the 19 analysts who cover Tenet Healthcare rate it at hold. Six analysts give the stock a buy rating and two rate it at sell.

TheStreet Ratings gives Tenet Healthcare a C- grade and a hold rating. The stock has risen 7.99% year to date.

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Shares of Morgan Stanley increased 4.13% to $21.17. In recent news, the bank is one of the largest investors in BATS, which has cancelled its initial public offering because of technological problems.

Morgan Stanley shares trade at a forward P/E of 8.99X; the average among its peers is 9.24. For comparison, JPMorgan Chase ( JPM) has a lower forward P/E of 8.36X; Bank of America's ( BAC) forward P/E is 9.27X.

Fifteen of the 30 analysts who cover Morgan Stanley rate it at hold. Twelve analysts give the stock a buy rating and three rate it at sell.

TheStreet Ratings gives Morgan Stanley a C- grade and hold rating. The stock has risen 39.92% year to date.


Other top-performing S&P 500 stocks on Monday include:
  • Edwards Lifesciences (EW): The stock rose 5.93% Monday to $75.51. The stock has increased 6.8%. TheStreet Ratings gives Edwards Lifesciences a B grade with a buy rating and $82.58 price target.
  • Sprint Nextel (S): The stock increased 4.38% Monday to $2.86. The stock has risen 22.22% year to date. TheStreet Ratings gives Sprint Nextel a D grade and sell rating.
  • Amazon.com (AMZN): The stock rose 4.01% Monday to $202.87. The stock has increased 17.2% year to date. TheStreet Ratings gives Amazon.com a C+ grade and a hold rating.
  • Biogen Idec (BIIB): The stock increased 4% Monday to $125.80. The stock has risen 14.31% year to date. TheStreet Ratings gives Biogen Idec an A grade with a buy rating and $158.43 price target.
  • Expedia (EXPE): The stock rose 3.81% Monday to $35.44. The stock has increased 22.12% year to date. TheStreet Ratings gives Expedia a C+ grade and hold rating.
  • Citrix (CTXS): The stock increased 3.63% Monday to $80.50. The stock has risen 32.58% year to date. TheStreet Ratings gives Citrix an A- grade with a buy rating and $90.62 price target.
  • Hospira (HSP): The stock rose 3.6% Monday to $38.02 . The stock has increased 25.19% year to date. TheStreet Ratings gives Hospira a C grade and hold rating.
  • Waters (WAT): The stock increased 3.45% Monday to $94.03. The stock has risen 26.98% year to date. TheStreet Ratings gives Waters an A grade with a buy rating and $105.35 price target.

-- Written by Alexandra Zendrian in New York.

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