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Is Select Medical (SEM) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice 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 14.49, which compares to its industry's average of 19.04. 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 14.47.
SEM is also sporting a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SEM's PEG compares to its industry's average PEG of 1.50. Within the past year, SEM's PEG has been as high as 1.35 and as low as 0.77, with a median of 0.97.
Another notable valuation metric for SEM is its P/B ratio of 3.82. 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 company's current P/B looks solid when compared to its industry's average P/B of 4.07. Over the past 12 months, SEM's P/B has been as high as 3.94 and as low as 1.58, with a median of 2.73.
Finally, investors should note that SEM has a P/CF ratio of 9.54. 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 16.48. Over the past year, SEM's P/CF has been as high as 10.23 and as low as 4.62, with a median of 7.49.
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?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company value investors might notice 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 14.49, which compares to its industry's average of 19.04. 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 14.47.
SEM is also sporting a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SEM's PEG compares to its industry's average PEG of 1.50. Within the past year, SEM's PEG has been as high as 1.35 and as low as 0.77, with a median of 0.97.
Another notable valuation metric for SEM is its P/B ratio of 3.82. 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 company's current P/B looks solid when compared to its industry's average P/B of 4.07. Over the past 12 months, SEM's P/B has been as high as 3.94 and as low as 1.58, with a median of 2.73.
Finally, investors should note that SEM has a P/CF ratio of 9.54. 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 16.48. Over the past year, SEM's P/CF has been as high as 10.23 and as low as 4.62, with a median of 7.49.
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.