Analyst Upside

AU · rank #10 · 2026-09-07

THC

NYSE · $20.82B (USD)

SignalStrong Buy3.8strength 3.8 / 10
verdict · PROCEED

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Composite score
Z-score blend of all factors below.
1.445
EPS revisions (30d)
Change in consensus EPS estimate over the past 30 days ($/share).
+$0.64
Net revisions (30d)
Number of analysts revising upward minus downward.
15
Insider signal (90d)
$0 across 0 unique buyers.
-0.159
Analyst upside
Consensus target $285.10
+7.6%
Momentum acceleration
3-month minus 12-month momentum.
+50.55%
Analyst rating
5 = Strong Buy, 1 = Strong Sell.
4.55
Gross margin TTM+41.7%
52w high$283.05
Market cap (USD)$20.82B

The AI research card

Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.

Summary

Tenet Healthcare is a U.S. for-profit hospital operator generating over $5.6B in quarterly revenue through acute-care and outpatient networks, actively deleveraging via ~$3.3B in planned hospital divestitures.

Rationale

The analyst_upside strategy is reinforced by a 43.5% Q2 earnings beat, 50%+ YoY EPS growth, raised full-year EBITDA guidance to $4.8–5.0B, and 89% revision agreement among 20 analysts lifting estimates by $3.36 over 90 days — a textbook fundamental re-rating with broad sell-side conviction.

Material risks

  • 1ACA exchange volatility is already a realized revenue drag (~$65M/quarter headwind) that could worsen with policy changes, directly compressing the EBITDA margin expansion thesis underpinning the raised guidance.
  • 2Divestiture execution risk on the $3.3B Alabama and South Carolina asset sales — deal delays, regulatory friction, or valuation shortfalls would undermine the deleveraging narrative and leave THC with elevated leverage against a high-rate environment.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.

OpenAI
Proceed
Claude
Proceed
Gemini
Proceed