Why Select Medical (SEM) is a Top Momentum Stock for the Long-Term

Zacks highlights Select Medical (SEM) as a potentially attractive momentum stock, noting its Zacks Rank of #3 (Hold) and a VGM Score of B. SEM's shares are up 2.2% over the past four weeks, with a Momentum Style Score of B and one analyst raising their fiscal 2025 earnings estimate; the Zacks Consensus Estimate has increased to $1.14 per share, reflecting an average earnings surprise of 8.3%.

Analysis

Select Medical (SEM) is highlighted by Zacks as a healthcare stock with notable momentum characteristics, despite carrying a Zacks Rank of #3 (Hold). The company has achieved a Momentum Style Score of B and its shares have appreciated by 2.2% over the past four weeks. Supporting a potentially positive outlook, one analyst revised their fiscal 2025 earnings estimate higher in the last 60 days; however, the Zacks Consensus Estimate for fiscal 2025 earnings per share has remained unchanged at $1.14. SEM also demonstrates a consistent record of exceeding earnings expectations, with an average earnings surprise of 8.3%. Combined with a VGM Score of B, these factors suggest SEM may offer upside potential, particularly as Zacks methodology indicates that a #3 Rank stock with A or B Style Scores can still be attractive. The general sentiment from the provided signals is strongly positive regarding SEM, though the immediate market impact score is low.

Key Decisions for Investors

• Given its B-rated Momentum and VGM Style Scores alongside recent share price appreciation, momentum-focused investors may find Select Medical (SEM) worthy of further due diligence despite its #3 (Hold) Zacks Rank.
• Investors should monitor for any further positive revisions to earnings estimates or an upgrade in the Zacks Rank, as these could signal strengthening fundamentals beyond the current single analyst's upward revision and strong earnings surprise history.
• While the unchanged consensus EPS estimate suggests broader analyst sentiment has not yet shifted, the positive momentum indicators and favorable Style Scores warrant keeping SEM on a watchlist for potential long-term opportunities.