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Select Medical (SEM) Gains As Market Dips: What You Should Know

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In the latest trading session, Select Medical (SEM - Free Report) closed at $24.15, marking a +1.09% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.57%. Elsewhere, the Dow lost 1.57%, while the tech-heavy Nasdaq lost 1.89%.

Prior to today's trading, shares of the hospital and rehabilitation center operator had gained 3.24% over the past month. This has outpaced the Medical sector's loss of 1.74% and the S&P 500's gain of 2.35% in that time.

Investors will be hoping for strength from SEM as it approaches 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 prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.34 billion, up 5.73% from the prior-year quarter.

Any recent changes to analyst estimates for SEM should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. SEM is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, SEM is holding a Forward P/E ratio of 17.7. For comparison, its industry has an average Forward P/E of 16.74, which means SEM is trading at a premium to the group.

Investors should also note that SEM has a PEG ratio of 1.26 right now. 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 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 59, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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