In the latest trading session, Select Medical (SEM - Free Report) closed at $23.32, marking a +0.6% move from the previous day. This change outpaced the S&P 500's 0.71% loss on the day. Elsewhere, the Dow lost 0.81%, while the tech-heavy Nasdaq lost 0.79%.
Heading into today, shares of the hospital and rehabilitation center operator had gained 2.39% over the past month, lagging the Medical sector's gain of 4.11% and the S&P 500's gain of 4.77% in that time.
SEM will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.20, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.34 billion, up 6.02% from the year-ago period.
Investors might also notice recent changes to analyst estimates for SEM. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SEM is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that SEM has a Forward P/E ratio of 17.17 right now. Its industry sports an average Forward P/E of 16.74, so we one might conclude that SEM is trading at a premium comparatively.
Investors should also note that SEM has a PEG ratio of 1.23 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - HMOs was holding an average PEG ratio of 1.2 at yesterday's closing price.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.