Tenet Healthcare Corp (THC): Today's Highlighted Laggard In Health Care

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Tenet Healthcare ( THC) pushed the Health Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day up 0.2%. By the end of trading, Tenet Healthcare fell 51 cents (-1.2%) to $43.52 on average volume. Throughout the day, two million shares of Tenet Healthcare exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $43.48-$44.45 after having opened the day at $44.10 as compared to the previous trading day's close of $44.03. Other companies within the Health Care sector that declined today were: BSD Medical Corporation ( BSDM), down 29.1%, Escalon Medical Corporation ( ESMC), down 12%, Idera Pharmaceuticals ( IDRA), down 9.5%, and Chelsea Therapeutics International ( CHTP), down 9.1%.
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Tenet Healthcare Corporation, an investor-owned health care services company, owns and operates acute care hospitals, ambulatory surgery centers, diagnostic imaging centers, urgent care centers, and related health care facilities in the United States. Tenet Healthcare has a market cap of $4.57 billion and is part of the health services industry. The company has a P/E ratio of 25.8, above the S&P 500 P/E ratio of 17.7. Shares are up 35.6% year to date as of the close of trading on Monday. Currently there are six analysts that rate Tenet Healthcare a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Tenet Healthcare as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

On the positive front, Atossa Genetics ( ATOS), up 16.4%, Synergy Pharmaceuticals ( SGYP), up 16%, Unilife Corporation ( UNIS), up 15.6%, and Prima Biomed ( PBMD), up 14.6%, were all gainers within the health care sector with Stryker Corporation ( SYK) being today's featured health care sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the health care sector could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health care sector could consider ProShares Ultra Short Health Care ( RXD).

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