Select Medical (SEM) closed at $23.23 in the latest trading session, marking a +0.65% move from the prior day. This move outpaced the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq lost 0.27%.
Heading into today, shares of the hospital and rehabilitation center operator had gained 1.36% over the past month, lagging the Medical sector's gain of 2.64% and the S&P 500's gain of 4.56% in that time.
SEM will be looking to display strength as it nears its next earnings release. On that day, SEM is projected to report earnings of $0.20 per share, which would represent no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.34 billion, up 5.73% from the year-ago period.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SEM is currently a Zacks Rank #3 (Hold).
Looking at its valuation, SEM is holding a Forward P/E ratio of 17.1. Its industry sports an average Forward P/E of 17.1, so we one might conclude that SEM is trading at a no noticeable deviation comparatively.
Investors should also note that SEM has a PEG ratio of 1.22 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - HMOs stocks are, on average, holding a PEG ratio of 1.25 based on yesterday's closing prices.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 23% 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.
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