For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Select Medical (
SEM Quick Quote SEM - Free Report) ten years ago? It may not have been easy to hold on to SEM for all that time, but if you did, how much would your investment be worth today? Select Medical's Business In-Depth
With that in mind, let's take a look at Select Medical's main business drivers.
Select Medical is a healthcare company with approximately 36,050 employees throughout the United States. It owns long term acute care and inpatient rehabilitation hospitals, as well as occupational health and physical therapy clinics.
As of Dec 31, 2020, Select Medical operated 99 critical illness recovery hospitals in 28 states, 30 rehabilitation hospitals in 12 states, and 1,788 outpatient rehabilitation clinics in 37 states and the District of Columbia. Select Medical’s joint venture subsidiary, Concentra operated 517 occupational health centers in 41 states. At Dec 31, 2020, Select Medical had operations in 46 states and the District of Columbia. The company’s reportable segments include:
Critical Illness Recovery Hospital – (34% of net operating revenues in 2020) consists of hospitals designed to serve the needs of patients recovering from critical illnesses, often with complex medical needs.
Rehabilitation Hospital – (12%) consists of hospitals designed to serve patients that require intensive physical rehabilitation care. Patients are typically admitted to critical illness recovery hospitals and rehabilitation hospitals from general acute care hospitals. As of Dec 31, 2019, the company operated 29 rehabilitation hospitals in 12 states.
Outpatient Rehabilitation – (19%) consists of clinics that provide physical, occupational, and speech rehabilitation services.
Concentra – (35%) provides occupational health services in UnitedStates. On Dec 31, 2020, Select Medical acquired approximately 11.1% of the outstanding membership interests of Concentra Group Holdings Parent. Following this purchase, Select Medical owns approximately 78.0% of the outstanding membership interests of Concentra Group Holdings Parent,
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Select Medical ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2011 would be worth $4,741.11, or a 374.11% gain, as of June 16, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 235.59% and the price of gold increased 16.84% over the same time frame in comparison.
Analysts are anticipating more upside for SEM.
Select Medical shares of the company have outperformed the industry in a year's time. Over the past 30 days, the company has witnessed the consensus estimates for 2021 move north. Its revenue growth courtesy of strong segmental performances is impressive. The company's acquisition strategy is aiding organic growth. A geographically diversified portfolio of facilities in the United States enables it to pursue multiple potential buyout opportunities. Also, the company is well poised to capitalize on consolidation opportunities within each of the business segments. Its strong guidance for 2021 instills confidence in investors. However, high debt in the capital structure is a concern for the company. The bottom line will be bereft of the cushion provided by the share buyback activity until the same resumes.
The stock is up 13.60% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2021. The consensus estimate has moved up as well.