10 High-Flying Stocks to Buy Now

7) Select Medical Holdings Corporation (NYSE:SEM)

% Increase on a YTD Basis: ~42%

Expected Upside Potential: 32.28%

Number of Hedge Fund Holdings: 20

Select Medical Holdings Corporation (NYSE:SEM) operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the US.

On the YTD basis, the company’s stock saw an increase of ~42%, serving as an affirmation of its strong market position and potential for future growth. Select Medical Holdings Corporation (NYSE:SEM) wrapped up an IPO of Concentra on July 26 and still has a majority stake of ~82.23%. However, it has plans to distribute the remaining interest to shareholders in a year. Select Medical Holdings Corporation (NYSE:SEM) continues to advance its growth strategy by opening new facilities and reporting revenue increases in its hospital divisions.

Furthermore, Select Medical Holdings Corporation (NYSE:SEM) witnessed labor cost improvement, with lower RN agency costs and sign-on bonuses. The company continues to focus on clinical efficiencies and scheduling improvements. Also, wage rates for permanent staff in critical illness hospitals have been stabilizing to pre-COVID-19 levels.

Select Medical Holdings Corporation (NYSE:SEM)’s strategic developments and operational efficiencies have placed it well for continued growth. With hospital divisions surpassing revenue expectations and effective management of labor costs, Select Medical Holdings Corporation (NYSE:SEM) has been tackling the challenges of the broader healthcare industry while pursuing expansion strategies.

For FY 2024, the company anticipates revenue of between $6.9 billion – $7.1 billion and adjusted EBITDA of between $845 million – $885 million. Analysts at Benchmark reissued a “Buy” rating on the shares of Select Medical Holdings Corporation (NYSE:SEM), setting a price objective of $48.00 on 6^th September.

As per Insider Monkey’s Q2 2024 database, 20 hedge funds were long Select Medical Holdings Corporation (NYSE:SEM).