Here's Why Select Medical (SEM) is a Strong Value Stock

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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most 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 is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 12X for the current fiscal year compared to the Medical - HMOs industry's P/E of 16.2X. Additionally, SEM has a PEG Ratio of 0.5 and a Price/Cash Flow ratio of 8.1X. Value investors should also note SEM's Price/Sales ratio of 0.5X.

Many value investors pay close attention to a company's earnings as well. For SEM, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $1.96 per share for 2023. Per share SEM boasts an average earnings surprise of 9.8%.

Investors should take the time to consider SEM for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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