Select Medical (SEM) closed the last trading day at USD 39.94, up +0.99% from the previous trading session. That move outpaced the S&P 500’s daily gain of 0.88%.
The share of the hospital and rehabilitation center operator had gained 1.88% in the past month. At the same time, the medical sector lost 1.22% while the S&P 500 gained 0.15%.
Wall Street will look to the SEM for positivity as it nears its next earnings report date. On that day, SEM is expected to post earnings of $ 0.60 per share, representing a 57.89% year-over-year growth. Our latest consensus estimate is for quarterly revenue of $ 1.51 billion, up 22.67% from the same period last year.
For the full year, our Zacks Consensus Estimates project earnings per share of $ 2.56 and revenue of $ 6.11 billion, a year-over-year change of + 35.45% and + 10.37%, respectively would correspond.
It is also important to note the recent changes in analyst estimates for SEM. These most recent revisions typically reflect developments in short-term business trends. With this in mind, we can view positive valuation revisions as a sign of optimism about the company’s business outlook.
Our research shows that these changes in estimates correlate directly with short-term stock prices. We developed the Zacks Rank to take advantage of this phenomenon. Our system takes these changes in estimates into account and provides a clear, actionable rating model.
The Zacks Rank system ranges from # 1 (strong buy) to # 5 (strong sell) and has a proven, externally audited track record of outperformance, with the # 1 stocks returning an average of + 25% per month since 1988 the EPS estimate of the Zacks Consensus has increased by 15.06%. SEM currently has a Zacks rank of # 2 (Buy).
In terms of valuation, SEM is currently trading with a forward P / E of 15.45. This is a discount to the industry’s average forward P / E of 18.81.
It’s also worth noting that SEM currently has a PEG ratio of 1.03. This metric is used in a similar way to the famous P / E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Medical HMOs held an average PEG ratio of 1.22 at yesterday’s closing price.
The Medical Sector – HMOs belongs to the Medical Sector. This industry currently has a Zacks industry rank of 49, making it the top 20% of all 250+ industries.
The Zacks Industry Rank is a best-to-worst ranking based on the average Zacks rank of each company in each of those sectors. Our research shows that the top-rated 50% of industries outperform the bottom half by a factor of 2 to 1.
Track all of these price action metrics and many more on Zacks.com.
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