Bull’s Eye Report: Tenet Healthcare (THC)

Tenet Healthcare has been trending steadily upward

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
Tenet Healthcare Corp THC Health Care Facilities 9.5 +34.44% $44.04

Why We Like The Stock:

Tenet Healthcare Corp. (THC) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) in a strong sub-industry, healthcare facilities. Facilities stocks like Universal Health Services (UHS), Community Health Systems (CYH), Health Management Associates (HMA), and THC all share healthy technical set-ups while handily outperforming the S&P 500 this year. THC is already up nearly 35% this year, but one look at the chart shows that the gains are not parabolic or by any means unsustainable, as the stock has spent lengthy periods consoldiating in April and mid-May. Currently, the stock has just crossed above its major moving averages and looks to be on the upswing again for a run back to its May highs of $49.25. Healthcare facilities stocks have been great in 2013, and who knows how many more chances there will be to buy a chart like THC. We’d give it a short leash with a stop below the 50-day moving average, but THC looks poised to run higher and is a compelling buy at current prices.

We Would Be Buyers:

At the current price (~$46.75).

Company Profile:

Tenet Healthcare Corporation is an investor-owned health care services company whose subsidiaries and affiliates own and operate acute care hospitals, ambulatory surgery centers, diagnostic imaging centers and related health care facilities. Its core business is focused on providing acute care treatment, including inpatient care, intensive care, cardiac care, radiology services and emergency medical treatment, as well as outpatient services. Tenet’s operations include the California region, the Central region, the Florida region and the Southern States region.

Stock Rating: 9.5

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Tenet Healthcare – Last Three Months

thc 1 Bull's Eye Report: Tenet Healthcare (THC)

Tenet Healthcare – Last 12 Months

thc 2 Bull's Eye Report: Tenet Healthcare (THC)

Tenet Healthcare – Last Five Years

thc 3 Bull's Eye Report: Tenet Healthcare (THC)
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