Tenet Story

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THC -- USA Stock  

USD 21.78  0.02  0.09%

As many rational traders are trying to avoid healthcare space, it makes sense to go over Tenet Healthcare a little further and understand how it stands against Envision Healthcare and other similar entities. We are going to analyze some of the competitive aspects of both Tenet and Envision.
Published over a month ago
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Will Envision Healthcare and Tenet (NYSE:THC) make up?
By analyzing existing basic indicators between Tenet Healthcare and Envision, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Envision with a short position in Tenet Healthcare. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Tenet Healthcare has an asset utilization ratio of 133.67 percent. This suggests that the company is making $1.34 for each dollar of assets. An increasing asset utilization means that Tenet Healthcare is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Tenet or Envision is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Tenet Healthcare's Liquidity

Tenet Healthcare financial leverage refers to using borrowed capital as a funding source to finance Tenet Healthcare ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Tenet Healthcare financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Tenet Healthcare's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Tenet Healthcare, but it might be worth checking our own buy vs. sell analysis

Correlation Between Tenet and Envision Healthcare

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Tenet Healthcare together with similar or unrelated positions with a negative correlation. For example, you can also add Envision Healthcare to your portfolio. If Envision Healthcare is not perfectly correlated to Tenet Healthcare it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Tenet Healthcare for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between THC and EVHC for more information.

Note

Are you currently holding both Tenet Healthcare and Envision Healthcare in your portfolio? Please note if you are using this as a pair-trade strategy between Tenet Healthcare and Envision Healthcare, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Exercise or conversion by Ronald Rittenmeyer of 62908 shares of Tenet Healthcare subject to Rule 16b-3

Legal trades by Tenet Healthcare insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Tenet insider trading alert for exercise of common stock by Ronald Rittenmeyer, Executive Chairman and CEO, on 30th of August 2020. This event was filed by Tenet Healthcare Corp with SEC on 2020-04-02. Statement of changes in beneficial ownership - SEC Form 4. Ronald Rittenmeyer currently serves as executive chairman of the board, chief executive officer of Tenet Healthcare [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Detailed Perspective On Tenet Healthcare

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Tenet Healthcare revenue. Based on the latest financial disclosure, Tenet Healthcare reported 18.45 B of revenue. This is 141.91% higher than that of the Healthcare sector and significantly higher than that of the Medical Care Facilities industry. The revenue for all United States stocks is 95.55% lower than that of the stock. As for Envision Healthcare we see revenue of 8.14 B, which is much higher than that of the Medical Care Facilities

Tenet18.45 Billion
Sector0.0
Envision8.14 Billion
18.4 B
Tenet
Sector
8.1 B
Envision

Is Tenet showing appearance of lower volatility?

Current Information Ratio is up to 0.06. Price may slip again. Tenet Healthcare exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Tenet Healthcare individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Tenet Healthcare future systematic risk.

Our Final Take On Tenet Healthcare

Whereas some firms in the medical care facilities industry are either recovering or due for a correction, Tenet may not be as strong as the others in terms of longer-term growth potentials. While some investors may not share our view, we believe that right now is not a good time to increase your holdings in Tenet. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Tenet Healthcare.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Tenet Healthcare. Please refer to our Terms of Use for any information regarding our disclosure principles.

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