Why Momentum Investors Should Target Tenet Healthcare (THC) in 2026

Momentum investing thrives on identifying stocks with accelerating price trends and robust earnings momentum. As 2026 unfolds, Tenet Healthcare (THC) emerges as a compelling candidate for momentum-focused investors, supported by a Zacks Momentum Score of B, strong earnings revisions, and a recent 34.7% surge in its stock price over four weeks. While the Zacks Rank remains at #3 (Hold), the confluence of these factors suggests a strategic entry point for investors seeking near-term alpha.

Zacks Momentum Score and Earnings Revisions: A Recipe for Outperformance

As of early 2026, Tenet Healthcare's Zacks Momentum Score of B underscores its potential for upward price movement. This score is derived from metrics such as price trends, earnings estimate revisions, and institutional buying activity. Analysts have revised their 2025 earnings estimates upward by $0.66 to $12.69 per share, reflecting confidence in the company's operational execution. Over the past 60 days, earnings forecasts have climbed by $0.33, projecting a 35.9% year-over-year growth in EPS. Such revisions are critical for momentum investors, as they often precede stock price acceleration.

The company's Q3 2025 results further validate this optimism. Adjusted EBITDA surged to $1.099 billion, a 12% year-over-year increase, driven by its ambulatory care segment and margin expansion. Tenet's strategic pivot toward higher-margin outpatient services-operating 530 ambulatory surgery centers-has amplified its earnings resilience. With a forward P/E ratio of 12.7x, the stock appears undervalued relative to its peers, offering a margin of safety for momentum plays.

Price Momentum: A 34.7% Surge and Technical Tailwinds

Tenet Healthcare's stock has demonstrated explosive momentum in late 2025 and early 2026. Over the past four weeks, shares rallied 34.7%, outpacing the S&P 500 by a wide margin. This surge was fueled by a 11.8% single-day gain on November 24, 2025, and a 60.6% year-to-date return. Technical indicators reinforce the bullish case: the stock is trading within a horizontal trend with a 90% probability of staying between $186.91 and $218.71, while a pivot bottom signal and rising volume suggest a favorable entry point.

Institutional interest also bolsters the momentum narrative. Entities like Norges Bank and Eminence Capital LP have increased their stakes, signaling confidence in Tenet's long-term trajectory. Meanwhile, analyst ratings remain overwhelmingly positive, with 15 out of 19 analysts issuing "Buy" or "Strong Buy" recommendations and a consensus price target of $231.81.

Strategic Entry: Balancing Risk and Reward

While the Zacks Rank of #3 (Hold) indicates a neutral stance, momentum investors should not dismiss THC's potential. The stock's VGM Score of A-reflecting strong value, growth, and momentum characteristics-suggests it is well-positioned to outperform in a sector poised for growth. Additionally, Tenet's disciplined cost management and AI-driven clinical tools have enhanced its return on equity to 25.1%, further solidifying its competitive edge.

Risks remain, including potential headwinds from healthcare policy shifts and reimbursement pressures. However, the company's diversified outpatient network and consistent earnings surprises (26.4% average surprise) provide a buffer. For momentum investors, the key is to capitalize on the current updraft while monitoring for any signs of overvaluation.

Conclusion: A Momentum Play with Conviction

Tenet Healthcare's combination of a Zacks Momentum Score of B, robust earnings revisions, and a 34.7% four-week price gain positions it as a standout opportunity for 2026. While the Zacks Rank of #3 may temper expectations, the stock's technical strength and analyst optimism justify a strategic entry. Momentum investors who act decisively can leverage this confluence of factors to capture near-term alpha, provided they remain vigilant to evolving sector dynamics.