Select Medical stock hits 52-week low at $20.35

In a challenging market environment, Select Medical Holdings Corp (NYSE:)’s stock has touched a 52-week low, dipping to $20.35. Despite the broader economic headwinds, the company has experienced a significant 1-year change, with its stock value surging by 65.24%. This notable increase over the past year indicates a strong recovery from the lows, capturing the attention of investors who are keen on the company’s performance amidst fluctuating market conditions. The 52-week low serves as a critical point of reference for the stock’s trajectory and potential resilience in the face of ongoing market volatility.

In other recent news, Select Medical Holdings Corporation has reported a solid growth in the third quarter of 2024, with a 6% increase in both consolidated revenue and adjusted EBITDA compared to the same period last year. The company has also successfully initiated the initial public offering (IPO) of Concentra, issuing over 23 million shares and retaining a majority stake. Select Medical plans to distribute its remaining interest in Concentra to shareholders by the end of the year, dependent on market conditions.

In addition to these developments, Select Medical has seen a 14% revenue increase in the inpatient rehab division and a 12% rise in adjusted EBITDA. The company’s critical illness recovery division also reported a 3% revenue increase and a 9% rise in adjusted EBITDA. Moreover, a new 48-bed rehab hospital is under development in Jacksonville, Florida, with additional facilities planned in other states.

The earnings per share (EPS) increased to $0.43, up from $0.38 in Q3 2023, and a cash dividend of $0.125 was declared. The company has revised its 2024 revenue outlook to a range of $6.95 billion to $7.15 billion, with adjusted EBITDA projected between $865 million and $885 million. These recent developments highlight Select Medical’s steady progress and commitment to shareholders.

InvestingPro Insights

Select Medical Holdings Corp’s recent market performance offers a nuanced picture for investors. While the stock has touched a 52-week low, InvestingPro data reveals a compelling turnaround, with a 66.51% price total return over the past year, aligning closely with the article’s reported 65.24% surge. This resilience is further underscored by the stock’s current price, which stands at 94.44% of its 52-week high, suggesting a robust recovery from recent lows.

InvestingPro Tips highlight that Select Medical is trading at a low P/E ratio relative to its near-term earnings growth, with a current P/E ratio of 18.3. This could indicate potential undervaluation, especially considering the company’s profitability over the last twelve months and analysts’ predictions for continued profitability this year.

Additionally, the company’s valuation implies a strong free cash flow yield, which may be attractive to value-oriented investors. For those interested in a deeper analysis, InvestingPro offers 5 additional tips that could provide further insights into Select Medical’s financial health and market position.

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