10 Best Healthcare Stocks For Long-Term Investment

3. Tenet Healthcare Corporation (NYSE:THC)

Number of Hedge Fund Holders: 65 

Tenet Healthcare Corporation (NYSE:THC) is a leading U.S. healthcare provider, operating hospitals, outpatient centers, and specialty care facilities. It generates revenue through patient services, insurance reimbursements, physician services, outpatient care, and ancillary services like pharmacy operations and medical equipment rentals.

Tenet Healthcare Corporation (NYSE:THC) delivered strong financial results for Q4 and the full year 2024, highlighting its operational efficiency and strategic growth. Net operating revenue reached $20.7 billion, supported by same-facility revenue growth despite hospital divestitures. Net income surged to $3.2 billion, significantly up from $611 million in 2023, driven by a $2.916 billion pre-tax gain from hospital sales. Adjusted EBITDA grew 13% year-over-year to $4 billion, with a margin improvement of over 200 basis points to 19.3%.

In its key segments, USPI (Ambulatory Care) saw a 17% rise in adjusted EBITDA to $1.81 billion, with a Q4 margin of 42.1% and strong growth in high-acuity cases. The hospital segment’s adjusted EBITDA increased by 9% to $2.185 billion, supported by a 4.7% rise in same-store admissions. Free cash flow for the year was $1.1 billion, excluding divestiture-related taxes. Additionally, the corporation repurchased 5.6 million shares worth $672 million, signaling confidence in its valuation.

Strategically, Tenet Healthcare Corporation (NYSE:THC) has reshaped its portfolio by selling 14 hospitals, generating $5 billion in proceeds to strengthen its balance sheet. As one of the best healthcare stocks, it expanded its Ambulatory Surgery Center (ASC) network by adding over 70 new centers, capitalizing on the industry’s shift toward outpatient care. Investments in AI-driven technologies further enhance clinical efficiency and patient experiences. With a strong payer mix and pricing power, the business is well-positioned for continued growth.