Trade-Ideas LLC identified Tenet Healthcare ( THC) as a "dead cat bounce" (down big yesterday but up big today) 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 $39.2 million.
  • THC has traded 198,565 shares today.
  • THC is up 3% today.
  • THC was down 5.6% yesterday.

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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 7 rate it a hold.

The average volume for Tenet Healthcare has been 1.4 million shares per day over the past 30 days. Tenet Healthcare has a market cap of $3.0 billion and is part of the health care sector and health services industry. The stock has a beta of 0.88 and a short float of 13.6% with 7.78 days to cover. Shares are up 1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Tenet Healthcare as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 14.3%. Since the same quarter one year prior, revenues rose by 14.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 357.89% to $147.00 million when compared to the same quarter last year. In addition, TENET HEALTHCARE CORP has also vastly surpassed the industry average cash flow growth rate of 39.99%.
  • TENET HEALTHCARE CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TENET HEALTHCARE CORP swung to a loss, reporting -$1.43 versus $0.32 in the prior year. This year, the market expects an improvement in earnings ($1.89 versus -$1.43).
  • 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 11.68%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.16% trails that of the industry average.

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