(SEM) Select Medical Holdings - Ratings and Ratios

Select Medical Holdings Corporation (NYSE:SEM) is a leading operator of specialized healthcare facilities in the United States, focusing on critical illness recovery, rehabilitation, and outpatient care. The company, founded in 1996 and headquartered in Mechanicsburg, Pennsylvania, manages a network of critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics. Its operations are divided into three primary segments: Critical Illness Recovery Hospital, Rehabilitation Hospital, and Outpatient Rehabilitation.

The Critical Illness Recovery Hospital segment specializes in treating patients with severe medical conditions, including heart failure, infectious diseases, respiratory failure, and neurological events. These hospitals provide prolonged recovery care for patients requiring extended medical support. The Rehabilitation Hospital segment offers comprehensive therapy and rehabilitation services for patients with brain and spinal cord injuries, strokes, amputations, and orthopedic conditions. The Outpatient Rehabilitation segment operates clinics that deliver physical, occupational, and speech therapy programs, along with specialized services such as work-related injury rehabilitation, hand therapy, and cancer rehabilitation.

From a technical perspective, SEM is currently trading at $18.41, above its 20-day SMA of $16.51 but below its 200-day SMA of $18.60. The stock has shown moderate volatility with an ATR of 0.67. On the fundamental side, the company has a market cap of $2.1 billion, with a trailing P/E of 32.08 and a forward P/E of 15.29, indicating potential undervaluation. The P/B ratio of 1.25 reflects a reasonable valuation relative to book value, while the P/S ratio of 0.41 suggests strong revenue generation.

3-Month Forecast: Based on the current technical and fundamental data, SEM is expected to trade in a range of $16.50 to $20.00. The stock is likely to remain bullish in the short term, supported by its position above the 20-day and 50-day SMAs. However, the proximity to the 200-day SMA may introduce resistance. Fundamentally, the companys focus on specialized healthcare services positions it well for steady growth in a fragmented market.