Tenet Healthcare Corp (THC): Today's Featured Health Services Laggard

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 Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Tenet Healthcare fell $0.68 (-1.6%) to $41.85 on average volume. Throughout the day, 2,212,957 shares of Tenet Healthcare exchanged hands as compared to its average daily volume of 1,997,800 shares. The stock ranged in price between $41.16-$43.05 after having opened the day at $42.91 as compared to the previous trading day's close of $42.53. Other companies within the Health Services industry that declined today were: Pingtan Marine Enterprise ( PME), down 64.8%, IsoRay ( ISR), down 9.7%, Enzo Biochem ( ENZ), down 7.9% and Mela ( MELA), down 7.2%.
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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 $4.6 billion and is part of the health care sector. The company has a P/E ratio of 126.0, above the S&P 500 P/E ratio of 17.7. Shares are up 31.0% year to date as of the close of trading on Thursday. Currently there are 8 analysts that rate Tenet Healthcare a buy, no analysts rate it a sell, and 5 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 revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins.

On the positive front, Escalon Medical Corporation ( ESMC), down 21.5%, USMD Holdings ( USMD), down 18.1%, Healthways ( HWAY), down 12.3% and Vision-Sciences Inc (DE ( VSCI), down 9.5% , were all gainers within the health services industry with Baxter International ( BAX) being today's featured health services industry leader.

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

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