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Here's Why Select Medical (SEM) is a Strong Value Stock

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

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.

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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 B. Compared to the Medical - HMOs industry's P/E of 16.8X, shares of Select Medical are trading at a forward P/E of 16.8X. SEM also has a PEG Ratio of 1.7, a Price/Cash Flow ratio of 9.7X, and a Price/Sales ratio of 0.7X.

A company's earnings performance is important for value investors as well. For fiscal 2024, one analyst revised their earnings estimate higher in the last 60 days for SEM, while the Zacks Consensus Estimate has increased $0.07 to $2.10 per share. SEM also holds an average earnings surprise of 19.3%.

Investors should take the time to consider SEM for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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Select Medical Holdings Corporation (SEM): Free Stock Analysis Report

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