1. Tenet Healthcare Corp (NYSE:THC)
Total Number of Shares Owned: 4,665,733
Total Value of Shares Owned: $620,682,461
Number of Hedge Fund Investors: 64
Topping our list of Larry Robbins’ 10 Best Stocks to Buy Now is Tenet Healthcare Corp (NYSE:THC). The company reported a revenue increase of about 5% compared to the same period last year, largely driven by higher patient volumes and an expansion of its services. This growth has also led to improved profit margins, reflecting better efficiency and effective cost management.
Additionally, Tenet Healthcare Corp (NYSE:THC) generated significant free cash flow, allowing it to either reduce debt or reinvest in growth opportunities. Tenet Healthcare Corp (NYSE:THC) is pursuing strategic initiatives that position it well for future success. Tenet Healthcare Corp (NYSE:THC) is expanding its outpatient care facilities to meet the growing preference for outpatient services, and it is actively forming partnerships and acquiring businesses to enhance its market presence. These efforts align with broader industry trends, such as the increasing demand for healthcare driven by an aging population and the shift towards value-based care models, which focus on improving patient outcomes.
Tenet Healthcare Corp (NYSE:THC) has expanded its telehealth services, responding to rising demand for virtual care, which helps attract new patients and improve overall satisfaction.
Meridian Contrarian Fund stated the following regarding Tenet Healthcare Corporation (NYSE:THC) in its Q2 2024 investor letter:
“Tenet Healthcare Corporation (NYSE:THC) is a top-ten U.S. operator of hospitals, outpatient surgery centers, and healthcare business process services. We initiated our position in late 2022 on the belief that the market’s short-term focus on COVID-caused staffing and admissions challenges overshadowed the value of Tenet’s long-term strategy of growing outpatient surgery centers.
Tenet accelerated the transition of its business this year toward high-margin and higher return-on-capital surgery centers by divesting hospitals. The market rewarded the shift with a 26% return in the period. Tenet remains a top five holding with growth driven by surgery centers and a continued attractive valuation.”
While we acknowledge the potential of Tenet Healthcare Corp (NYSE:THC), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the ones on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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