Yahoo Finance Why Select Medical (SEM) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Select Medical (SEM)
Select Medical is a healthcare company with approximately 53,800 employees throughout the United States. It owns long-term acute care and inpatient rehabilitation hospitals, as well as occupational health and physical therapy clinics.
SEM sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Medical - HMOs industry's P/E of 15.8X, shares of Select Medical are trading at a forward P/E of 15.8X. SEM also has a PEG Ratio of 1.6, a Price/Cash Flow ratio of 9.1X, and a Price/Sales ratio of 0.6X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.07 to $2.10 per share. SEM has an average earnings surprise of 19.3%.
SEM should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Select Medical Holdings Corporation (SEM) : Free Stock Analysis Report
