15 Small-Cap Healthcare Stocks Hedge Funds Are Buying

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3. Tenet Healthcare Corporation (NYSE:THC)

No. of Hedge Fund Holders: 65

Market Capitalization: $14.68 Billion

Analyst Upside: 10.68%

Tenet Healthcare Corporation (NYSE:THC) is a diversified healthcare services company. Tenet’s segments include Hospital Operations and Services and Ambulatory Care. The Hospital Operations segment includes nearly 135 outpatient facilities, while the Ambulatory Care segment owns almost 518 ambulatory surgery centers and 25 surgical hospitals.

On April 30, A.J. Rice from UBS raised the price target on THC from $217 to $230, keeping a Buy rating on the shares. Rice highlighted a strong Q1 performance with earnings beat by 39.30% and adjusted EBITDA growth of 14% from a year ago. The company posted adjusted earnings of $4.36, exceeding estimates by $1.23 per share. The adjusted EBITDA margin improved by 320 basis points to 22.3% in Q1, reflecting robust growth and operating efficiency. Tenet Healthcare Corporation’s (NYSE:THC) UPSI-adjusted EBITDA soared over 16% from a year ago, with same-facility revenues soaring by 6.8%. Overall, the company made notable progress and is set to post strong results ahead.

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