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Is Select Medical (SEM) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Select Medical (SEM - Free Report) . SEM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 15.75, which compares to its industry's average of 19.07. Over the last 12 months, SEM's Forward P/E has been as high as 20.21 and as low as 11.59, with a median of 14.37.
We also note that SEM holds a PEG ratio of 1.05. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SEM's industry currently sports an average PEG of 1.48. Within the past year, SEM's PEG has been as high as 1.35 and as low as 0.77, with a median of 0.96.
Investors should also recognize that SEM has a P/B ratio of 4.11. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.14. Over the past 12 months, SEM's P/B has been as high as 4.11 and as low as 1.58, with a median of 2.56.
Finally, our model also underscores that SEM has a P/CF ratio of 10.67. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SEM's P/CF compares to its industry's average P/CF of 17.77. SEM's P/CF has been as high as 10.67 and as low as 4.61, with a median of 7.08, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Select Medical is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SEM feels like a great value stock at the moment.
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Is Select Medical (SEM) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Select Medical (SEM - Free Report) . SEM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 15.75, which compares to its industry's average of 19.07. Over the last 12 months, SEM's Forward P/E has been as high as 20.21 and as low as 11.59, with a median of 14.37.
We also note that SEM holds a PEG ratio of 1.05. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SEM's industry currently sports an average PEG of 1.48. Within the past year, SEM's PEG has been as high as 1.35 and as low as 0.77, with a median of 0.96.
Investors should also recognize that SEM has a P/B ratio of 4.11. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.14. Over the past 12 months, SEM's P/B has been as high as 4.11 and as low as 1.58, with a median of 2.56.
Finally, our model also underscores that SEM has a P/CF ratio of 10.67. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. SEM's P/CF compares to its industry's average P/CF of 17.77. SEM's P/CF has been as high as 10.67 and as low as 4.61, with a median of 7.08, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Select Medical is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SEM feels like a great value stock at the moment.