Stock to Watch: Stock under Consideration: Select Medical Holdings (NYSE:SEM)

The shares of Select Medical Holdings Corporation (NYSE:SEM) currently has mean rating of 2.86 while 1 analysts have recommended the shares as “BUY”, 2 recommended as “OUTPERFORM” and 2 recommended as “HOLD”. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for sell.

The company’s mean estimate for sales for the current quarter ending June-16 is 1.10 billion by 6 analysts. The means estimate of sales for the year ending Dec-16 is 4.36 billion by 6 analysts.

The mean price target for the shares of Select Medical Holdings Corporation (NYSE:SEM) is at 12.63 while the highest price target suggested by the analysts is 17.00 and low price target is 9.50. The mean price target is calculated keeping in view the consensus of 4 brokerage firms.

The average estimate of EPS for the current fiscal quarter for Select Medical Holdings Corporation (NYSE:SEM) stands at 0.24 while the EPS for the current year is fixed at 0.87 by 6 analysts.

The next one year’s EPS estimate is set at 1.04 by 6 analysts while a year ago the analysts suggested the company’s EPS at 0.87. The analysts also projected the company’s long-term growth at 12.50% for the upcoming five years.

In its latest quarter ended on 31^st March 2016, Select Medical Holdings Corporation (NYSE:SEM) reported earnings of $0.23. In the matter of earnings surprises, the term “Cockroach Effect” is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates specialty hospitals and outpatient rehabilitation clinics in the United States. The company’s Specialty Hospitals segment provides long term acute care hospital (LTCH) services and inpatient acute rehabilitative hospital care. This segment offers various medical services for the treatment of respiratory failure, neuromuscular disorders, traumatic brain and spinal cord injuries, strokes, non-healing wounds, cardiac disorders, renal disorders, and cancer. As of December 31, 2015, this segment operated 127 specialty hospitals, including 109 LTCHs and 18 inpatient rehabilitation facilities in 27 states. Its Outpatient Rehabilitation segment operates clinics that provides physical, occupational, and speech rehabilitation services. This segment also offers medical rehabilitative services to residents and patients of nursing homes, hospitals, schools, assisted living and senior care centers, and worksites. In addition, this segment provides specialized programs, such as functional programs for work related injuries, hand therapy, post-concussion rehabilitation, and athletic training services; and services that are designed to prevent short term disabilities from becoming chronic conditions. This segment operated 1,038 outpatient rehabilitation clinics in 31 states and the District of Columbia. The company’s Concentra segment operates and provides medical centers and contract services at employer worksites and Department of Veterans Affairs community-based outpatient clinics (CBOCs) that deliver occupational medicine, consumer health, physical therapy, and veteran’s healthcare services. This segment operated 300 medical centers, 138 onsite clinics at employer worksites, and 33 Department of Veterans Affairs CBOCs in 43 states. Select Medical Holdings Corporation was founded in 1996 and is headquartered in Mechanicsburg, Pennsylvania.