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Is Select Medical (SEM) a Great Value Stock Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Select Medical (SEM - Free Report) . SEM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 12.55. This compares to its industry's average Forward P/E of 15.12. Over the past year, SEM's Forward P/E has been as high as 20.93 and as low as 7.91, with a median of 13.93.
We also note that SEM holds a PEG ratio of 0.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SEM's PEG compares to its industry's average PEG of 1.13. SEM's PEG has been as high as 1.50 and as low as 0.53, with a median of 0.98, all within the past year.
Another valuation metric that we should highlight is SEM's P/B ratio of 2.25. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.46. Within the past 52 weeks, SEM's P/B has been as high as 4.08 and as low as 1.58, with a median of 2.35.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SEM has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.63.
Finally, investors should note that SEM has a P/CF ratio of 6.63. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SEM's current P/CF looks attractive when compared to its industry's average P/CF of 14.45. Within the past 12 months, SEM's P/CF has been as high as 10.12 and as low as 4.02, with a median of 6.04.
These are just a handful of the figures considered in Select Medical's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SEM is an impressive value stock right now.
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Is Select Medical (SEM) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Select Medical (SEM - Free Report) . SEM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 12.55. This compares to its industry's average Forward P/E of 15.12. Over the past year, SEM's Forward P/E has been as high as 20.93 and as low as 7.91, with a median of 13.93.
We also note that SEM holds a PEG ratio of 0.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SEM's PEG compares to its industry's average PEG of 1.13. SEM's PEG has been as high as 1.50 and as low as 0.53, with a median of 0.98, all within the past year.
Another valuation metric that we should highlight is SEM's P/B ratio of 2.25. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.46. Within the past 52 weeks, SEM's P/B has been as high as 4.08 and as low as 1.58, with a median of 2.35.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SEM has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.63.
Finally, investors should note that SEM has a P/CF ratio of 6.63. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. SEM's current P/CF looks attractive when compared to its industry's average P/CF of 14.45. Within the past 12 months, SEM's P/CF has been as high as 10.12 and as low as 4.02, with a median of 6.04.
These are just a handful of the figures considered in Select Medical's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SEM is an impressive value stock right now.