Alert: Rating Downgrade (1/5/24)-Select Medical Holdings Corp (NYSE: SEM).

Stock Rating Downgrade

Reflecting eroding fundamentals and low Appreciation Potential, the Value Trend Rating for Select Medical Holdings Corp (NYSE: SEM) weakened during the last several trading days. SEM’s current Value Trend Rating is D and the prior Rating was C. Details supporting this lower rating are included in our next report.

Recent Price Action

Select Medical Holdings Corp (NYSE: SEM) stock closed at $26.87 on 1/5/24 after a large increase of 2.8%. Moreover, this advance was accompanied by exceptionally high trading volume at 205% of normal. The stock has risen 12.2% during the last week but has been weak relative to the market over the last nine months.

Current PriceTarget Research Rating

SEM’s future returns on capital are forecasted to be above the cost of capital. Accordingly, the company is expected to continue to be a major Value Builder.

Select Medical Holdings has a current Value Trend Rating of D (Negative). The Value Trend Rating reflects highly consistent signals from PTR’s two proprietary measures of a stock’s attractiveness. Select Medical Holdings has a slightly negative Appreciation Score of 40 and a slightly negative Power Rating of 39, resulting in the Negative Value Trend Rating.