Hospital operator Tenet Healthcare (NYSE:THC) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 3.3% year on year to $5.27 billion. The company’s full-year revenue guidance of $21.1 billion at the midpoint came in 0.9% above analysts’ estimates. Its non-GAAP profit of $4.02 per share was 40.1% above analysts’ consensus estimates.
Healthcare companies are pushing the status quo by innovating in areas like drug development and digital health. But financial performance has lagged recently as players offloaded surplus COVID inventories in 2023 and 2024, a headwind for overall demand.
The result? Over the past six months, the industry has tumbled by 7.8%. This drop is a far cry from the S&P 500’s 7.1% ascent.
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains.
This unpredictability can shake out even the most experienced investors.
Tenet Healthcare currently trades at $173.09 and has been a dream stock for shareholders. It’s returned 876% since July 2020, blowing past the S&P 500’s 96.3% gain. The company has also beaten the index over the past six months as its stock price is up 32.9% thanks to its solid quarterly results.
Each stock in this article is trading near its 52-week high.
These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Mid-cap stocks have the best odds of scaling into $100 billion corporations thanks to their tested business models and large addressable markets.
But the many opportunities in front of them attract significant competition, spanning from industry behemoths with seemingly infinite resources to small, nimble players with chips on their shoulders.
As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the hospital chains industry, including Tenet Healthcare (NYSE:THC) and its peers.
A company with profits isn’t always a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Hospital operator Tenet Healthcare (NYSE:THC) beat Wall Street’s revenue expectations in Q1 CY2025, but sales fell by 2.7% year on year to $5.22 billion. The company expects the full year’s revenue to be around $20.8 billion, close to analysts’ estimates. Its non-GAAP profit of $4.36 per share was 39.2% above analysts’ consensus estimates.
