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Is Select Medical (SEM) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Select Medical (SEM - Free Report) is a stock many investors are watching right now. SEM is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.56, while its industry has an average P/E of 16.37. Over the past year, SEM's Forward P/E has been as high as 18.45 and as low as 9.23, with a median of 13.79.
Investors will also notice that SEM has a PEG ratio of 0.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SEM's industry has an average PEG of 1.36 right now. SEM's PEG has been as high as 2.22 and as low as 0.38, with a median of 0.73, all within the past year.
Another notable valuation metric for SEM is its P/B ratio of 0.8. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SEM's current P/B looks attractive when compared to its industry's average P/B of 2.33. Over the past year, SEM's P/B has been as high as 2.70 and as low as 0.76, with a median of 1.10.
Finally, investors will want to recognize that SEM has a P/CF ratio of 5.13. 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 current P/CF looks attractive when compared to its industry's average P/CF of 10.15. Over the past 52 weeks, SEM's P/CF has been as high as 10.20 and as low as 4.63, with a median of 5.47.
These are only a few of the key metrics included in Select Medical's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SEM looks like an impressive value stock at the moment.
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Is Select Medical (SEM) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Select Medical (SEM - Free Report) is a stock many investors are watching right now. SEM is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.56, while its industry has an average P/E of 16.37. Over the past year, SEM's Forward P/E has been as high as 18.45 and as low as 9.23, with a median of 13.79.
Investors will also notice that SEM has a PEG ratio of 0.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SEM's industry has an average PEG of 1.36 right now. SEM's PEG has been as high as 2.22 and as low as 0.38, with a median of 0.73, all within the past year.
Another notable valuation metric for SEM is its P/B ratio of 0.8. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SEM's current P/B looks attractive when compared to its industry's average P/B of 2.33. Over the past year, SEM's P/B has been as high as 2.70 and as low as 0.76, with a median of 1.10.
Finally, investors will want to recognize that SEM has a P/CF ratio of 5.13. 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 current P/CF looks attractive when compared to its industry's average P/CF of 10.15. Over the past 52 weeks, SEM's P/CF has been as high as 10.20 and as low as 4.63, with a median of 5.47.
These are only a few of the key metrics included in Select Medical's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SEM looks like an impressive value stock at the moment.