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Are Investors Undervaluing Select Medical (SEM) 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Select Medical (SEM - Free Report) is a stock many investors are watching right now. SEM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.66, while its industry has an average P/E of 15.35. Over the past year, SEM's Forward P/E has been as high as 19.03 and as low as 8.48, with a median of 12.84.
Investors should also note that SEM holds a PEG ratio of 0.50. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SEM's industry has an average PEG of 1.15 right now. SEM's PEG has been as high as 1.27 and as low as 0.50, with a median of 0.82, all within the past year.
Another valuation metric that we should highlight is SEM's P/B ratio of 2.23. Investors use the P/B ratio to look at a stock's market value versus 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 3.55. Over the past 12 months, SEM's P/B has been as high as 2.88 and as low as 2.03, with a median of 2.48.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SEM has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.59.
Finally, our model also underscores that SEM has a P/CF ratio of 8.19. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.03. SEM's P/CF has been as high as 10.10 and as low as 6.35, with a median of 8.73, all within the past year.
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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Are Investors Undervaluing Select Medical (SEM) 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Select Medical (SEM - Free Report) is a stock many investors are watching right now. SEM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.66, while its industry has an average P/E of 15.35. Over the past year, SEM's Forward P/E has been as high as 19.03 and as low as 8.48, with a median of 12.84.
Investors should also note that SEM holds a PEG ratio of 0.50. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SEM's industry has an average PEG of 1.15 right now. SEM's PEG has been as high as 1.27 and as low as 0.50, with a median of 0.82, all within the past year.
Another valuation metric that we should highlight is SEM's P/B ratio of 2.23. Investors use the P/B ratio to look at a stock's market value versus 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 3.55. Over the past 12 months, SEM's P/B has been as high as 2.88 and as low as 2.03, with a median of 2.48.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SEM has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.59.
Finally, our model also underscores that SEM has a P/CF ratio of 8.19. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.03. SEM's P/CF has been as high as 10.10 and as low as 6.35, with a median of 8.73, all within the past year.
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.