Tenet Healthcare (THC) Benefiting from Capital Return Potential, Says Wells Fargo

Tenet Healthcare Corporation (NYSE:THC) is among the 15 Undervalued Momentum Stocks That Are Taking Off.

Following Tenet Healthcare Corporation’s (NYSE:THC) Q4 update, Wells Fargo lifted its people from $229 to $265 and maintained its Overweight standing connected February 16. The steadfast noted that the capitalist absorption aft the Q4 results was somewhat “surprising,” fixed that EBITDA had been mostly pre-announced and guidance had travel successful broadly successful enactment with expectations. The banal had rallied 17% aft the institution announced Q4 results connected February 11.

According to Wells Fargo, the beardown determination was not owed to incremental net revisions, but alternatively to improving capitalist condemnation astir superior instrumentality imaginable and Tenet’s alignment with prevailing marketplace narratives, which “appear to beryllium important drivers.”

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In its Q4 update connected February 11, the institution reported gross of $5.53 billion, 1% supra the statement of $5.47 billion. Adjusted EPS grew 37% twelvemonth implicit twelvemonth and came successful astatine $4.70, which was up of the thoroughfare anticipation of $4.05. For FY 2026, the institution guided for gross of $21.5-$22.3 cardinal and adjusted EBITDA of $4.485-$4.785 billion. EPS for the twelvemonth is expected to beryllium successful the scope of $16.19-$18.47, which was again up of the statement of $16.46 astatine the mid-point.

Several different analysts raised their terms targets aft the results. Among them, Morgan Stanley raised its terms people to $260 from $247, RBC Capital to $277 from $253, and KeyBanc to $250 from $225.

After beardown 57% returns successful 2025, the banal has rallied different 16% truthful acold successful 2026. At $230, the banal presently trades adjacent to its 52-week precocious of $235.8, arsenic of February 20.

While we admit the imaginable of THC arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.