Why Select Medical (SEM) is a Top Value Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
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
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight 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 17.1X, shares of Select Medical are trading at a forward P/E of 11.9X. SEM also has a PEG Ratio of 0.5, a Price/Cash Flow ratio of 8.1X, and a 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%.
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
