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Is Select Medical (SEM) a Great Value Stock Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.04. This compares to its industry's average Forward P/E of 17.83. Over the last 12 months, SEM's Forward P/E has been as high as 15.79 and as low as 8.01, with a median of 10.52.
Investors should also note that SEM holds a PEG ratio of 0.60. 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 1.24. Over the last 12 months, SEM's PEG has been as high as 1.05 and as low as 0.53, with a median of 0.70.
Investors should also recognize that SEM has a P/B ratio of 2.26. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.19. Over the past year, SEM's P/B has been as high as 4.30 and as low as 2.12, with a median of 2.89.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SEM has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.69.
Finally, we should also recognize that SEM has a P/CF ratio of 5.44. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SEM's P/CF compares to its industry's average P/CF of 18. Over the past year, SEM's P/CF has been as high as 10.75 and as low as 4.86, with a median of 6.28.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Select Medical is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SEM feels like a great value stock at the moment.
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Is Select Medical (SEM) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.04. This compares to its industry's average Forward P/E of 17.83. Over the last 12 months, SEM's Forward P/E has been as high as 15.79 and as low as 8.01, with a median of 10.52.
Investors should also note that SEM holds a PEG ratio of 0.60. 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 1.24. Over the last 12 months, SEM's PEG has been as high as 1.05 and as low as 0.53, with a median of 0.70.
Investors should also recognize that SEM has a P/B ratio of 2.26. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.19. Over the past year, SEM's P/B has been as high as 4.30 and as low as 2.12, with a median of 2.89.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SEM has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.69.
Finally, we should also recognize that SEM has a P/CF ratio of 5.44. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SEM's P/CF compares to its industry's average P/CF of 18. Over the past year, SEM's P/CF has been as high as 10.75 and as low as 4.86, with a median of 6.28.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Select Medical is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SEM feels like a great value stock at the moment.