Trade-Ideas LLC identified Tenet Healthcare ( THC) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Tenet Healthcare as such a stock due to the following factors:
- THC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.2 million.
- THC is up 2.7% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in THC with the Ticky from Trade-Ideas. See the FREE profile for THC NOW at Trade-Ideas More details on THC: Tenet Healthcare Corporation, together with its subsidiaries, primarily operates acute care hospitals and related healthcare facilities. The company operates through three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. Currently there are 11 analysts that rate Tenet Healthcare a buy, no analysts rate it a sell, and 6 rate it a hold. The average volume for Tenet Healthcare has been 2.3 million shares per day over the past 30 days. Tenet Healthcare has a market cap of $3.2 billion and is part of the health care sector and health services industry. The stock has a beta of 0.90 and a short float of 13.4% with 6.42 days to cover. Shares are up 4.6% year-to-date as of the close of trading on Friday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Tenet Healthcare as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow. Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Providers & Services industry. The net income has significantly decreased by 259.0% when compared to the same quarter one year ago, falling from $61.00 million to -$97.00 million.
- The debt-to-equity ratio is very high at 21.00 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, THC maintains a poor quick ratio of 0.71, which illustrates the inability to avoid short-term cash problems.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Health Care Providers & Services industry and the overall market, TENET HEALTHCARE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for TENET HEALTHCARE CORP is currently extremely low, coming in at 11.18%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.92% trails that of the industry average.
- Net operating cash flow has decreased to $191.00 million or 12.78% when compared to the same quarter last year. Despite a decrease in cash flow of 12.78%, TENET HEALTHCARE CORP is in line with the industry average cash flow growth rate of -18.97%.
- You can view the full Tenet Healthcare Ratings Report.
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