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Select Medical (SEM) Stock Moves -0.17%: What You Should Know

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Select Medical (SEM - Free Report) closed the most recent trading day at $23.10, moving -0.17% from the previous trading session. This change lagged the S&P 500's 0% on the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Prior to today's trading, shares of the hospital and rehabilitation center operator had gained 3.3% over the past month. This has lagged the Medical sector's gain of 4.21% and the S&P 500's gain of 3.37% in that time.

SEM will be looking to display strength as it nears its next earnings release. In that report, analysts expect SEM to post earnings of $0.20 per share. This would mark no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $1.34 billion, up 6.02% from the year-ago period.

SEM's full-year Zacks Consensus Estimates are calling for earnings of $1.12 per share and revenue of $5.42 billion. These results would represent year-over-year changes of +8.74% and +6.6%, respectively.

Investors should also note any recent changes to analyst estimates for SEM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SEM is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, SEM currently has a Forward P/E ratio of 20.75. This represents a premium compared to its industry's average Forward P/E of 20.25.

Meanwhile, SEM's PEG ratio is currently 1.48. 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. The Medical - HMOs industry currently had an average PEG ratio of 1.25 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 56, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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