5 Stocks Canyon Capital Advisors Can’t Live Without

4. Tenet Healthcare Corporation (NYSE:THC)

Value of Canyon Capital Advisors’ 13F Position: $136 million

Number of Hedge Fund Shareholders: 57

Hedge funds are becoming ever more bullish on Tenet Healthcare Corporation (NYSE:THC), one of the 5 Biggest Hospital Companies in the World. There’s been a 39% jump in ownership of the stock among the smart money over the past three quarters, with each successive quarter hitting a new all-time high in ownership. Canyon Capital owns 1.58 million shares as of March 31, down by 6% quarter-over-quarter.

Tenet Healthcare Corporation (NYSE:THC)’s earnings are expected to rise by 17% in 2023, which would put the hospital and pharmacy company’s P/E ratio at just 7x forward earnings. Loop Capital expects the company to address that valuation discrepancy in the future and is bullish on the company’s growing ambulatory segment, which it believes could be generating half of Tenet’s adjusted EBITDA within two years.

On the other hand, Mizuho recently slashed its price target on Tenet Healthcare Corporation (NYSE:THC) to $63 from $103, though it did maintain a ‘Buy’ rating on THC shares. The firm noted that surveys of inpatient and outpatient trends show that volumes are still below pre-pandemic levels, while nurse wage pressure could weigh on the company’s bottom line in the future.