NEW YORK (TheStreet) -- Shares of Tenet Healthcare  (THC) got a big boost Thursday thanks to the U.S. Supreme Court.

Tenet closed up 12.3% to $56.21. The stock, along with other health care company stocks, jumped on the Supreme Court ruling that the federal government can continue issuing subsidies to Americans through the Affordable Care Act, aka "Obamacare."

In a 6-3 victory for President Obama, the nation's highest court rejected the latest challenge to the law. Eligible American in the 34 states with federal marketplaces, as well as those living in states with their own exchanges, will continue to get federal tax credits. If the court had ruled against Obamacare, about 6.5 million Americans could have lost their credits for health care.

"Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them," Chief Justice Roberts wrote for the court.

TheStreet's Jim Cramer, co-portfolio manager of the Action Alerts PLUS charitable trust, pointed to opportunities in hospital and insurance, saying inexpensive stocks such as Tenet Healthcare could move higher following the ruling.

Shares of Tenet Healthcare, of Dallas, have gained nearly 11% since the start of the year. Tenet Healthcare was the best-performing S&P 500 component on the day.


TheStreet Ratings team rates TENET HEALTHCARE CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate TENET HEALTHCARE CORP (THC) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and poor profit margins."

You can view the full analysis from the report here: THC Ratings Report

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