Company Overview - Select Medical Holdings Corporation is one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics in the United States based on the number of facilities [4] - As of December 31, 2025, Select Medical operated 104 critical illness recovery hospitals in 28 states, 38 rehabilitation hospitals in 15 states, and 1,917 outpatient rehabilitation clinics in 39 states and the District of Columbia [4] - The company has operations in 39 states and the District of Columbia [4] Financial Results Announcement - Select Medical will release its financial results for the fourth quarter and full year ended December 31, 2025 on Thursday, February 19, 2026, after the market closes [1] - A conference call regarding these results will be hosted on Friday, February 20, 2026, at 9:00 am ET [2] - The conference call will be available as a live webcast and can be accessed through the company's website [2]

Core Viewpoint - Kaskela Law LLC is investigating Select Medical Holdings Corporation to determine potential violations of securities laws or breaches of fiduciary duties by the company and its officers and directors in relation to recent corporate actions [1]. Group 1 - The investigation is initiated on behalf of Select Medical shareholders [1]. - Shareholders are encouraged to contact Kaskela Law LLC for more information regarding their legal rights and options [2]. - Kaskela Law LLC specializes in representing investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis [2].

Core Insights - Select Medical Holdings Corporation (SEM) has formed a joint venture with Vibra Healthcare to enhance inpatient rehabilitation services in Southern Kentucky, specifically operating the Southern Kentucky Rehabilitation Hospital in Bowling Green [1][9] Company Strategy - The 76-bed facility will focus on acute inpatient rehabilitation for patients recovering from serious conditions such as strokes, traumatic brain injuries, and spinal cord injuries, addressing critical needs in underserved markets [2][3] - This partnership is a strategic move for SEM to expand its post-acute care services in Kentucky, complementing its existing network of two critical illness recovery hospitals and 65 outpatient rehabilitation centers [3][4] - The collaboration aligns with SEM's long-term growth strategy of expanding its rehabilitation hospital portfolio through capital-efficient joint ventures, supporting its growth objectives in the post-acute care segment [4] Future Plans - SEM is planning to open three new inpatient rehab facilities in 2026, including locations in Tucson, AZ, Ozark, MO, and New Jersey, along with additional acute rehab and neuro transitional units [5] Financial Performance - In the first nine months of 2025, SEM's total revenues increased by 4.7% year over year, indicating positive growth despite a challenging market environment [4][9] - Over the past year, SEM shares have declined by 17.9%, which is an improvement compared to the industry's decline of 26.8% [6]

Core Viewpoint - Kaskela Law LLC has initiated an investigation into Select Medical Holdings Corporation to assess potential violations of securities laws or breaches of fiduciary duties by the company and its executives in relation to recent corporate actions [1]. Group 1 - The investigation is being conducted on behalf of Select Medical's shareholders [1]. - Shareholders are encouraged to reach out to Kaskela Law LLC for more information regarding their legal rights and options [2]. - Kaskela Law LLC specializes in representing investors in cases related to securities fraud, corporate governance, and merger & acquisition litigation [2].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks with recent price momentum may be a safer approach [3] Group 2: Select Medical (SEM) Analysis - Select Medical (SEM) has shown a four-week price change of 11.9%, indicating strong investor interest [4] - SEM has gained 19.2% over the past 12 weeks, with a beta of 1.28, suggesting it moves 28% higher than the market [5] - SEM has a Momentum Score of B, indicating a favorable time to invest [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to SEM's Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - SEM is trading at a Price-to-Sales ratio of 0.34, indicating it is relatively cheap at present [7] Group 4: Additional Investment Opportunities - Other stocks also meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Zacks offers over 45 Premium Screens to assist in identifying winning stock picks based on various investing styles [9]

Core Insights - Select Medical Holdings Corporation (SEM) has received a take-private proposal from its executive chairman, Robert A. Ortenzio, offering $16 to $16.20 per share, representing a premium of up to 15.6% from the recent closing price of $14.01 [1][8] - The proposal indicates a potential shift to private ownership, suggesting that the executive believes there is untapped value in the business that could be realized outside of the public market [2][3] - The company has experienced a significant decline in stock value, dropping 63.8% over the past year, which is worse than the industry average decline of 42.3% [4][8] Financial Performance - SEM's current valuation stands at 10.43X forward earnings, which is below its five-year median of 12.32X and the industry average of 15X [6] - The rehabilitation hospital segment of SEM is showing positive trends with rising occupancy, admissions, and patient days [6] Market Position - SEM currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook compared to other stocks in the medical sector [7] - Other promising stocks in the sector include Aveanna Healthcare and The Pennant Group, both also holding a Zacks Rank of 2 [7]

Core Points - Select Medical Holdings Corporation has received a non-binding indication of interest from Robert A. Ortenzio to acquire all outstanding shares for cash consideration between $16.00 and $16.20 per share [1] - The Board of Directors is reviewing the proposal with their advisors and is committed to acting in the best interests of the company and its stockholders [2] Company Overview - Select Medical is one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics in the United States, operating 105 critical illness recovery hospitals, 36 rehabilitation hospitals, and 1,922 outpatient rehabilitation clinics as of September 30, 2025 [3]

Core Insights - Select Medical Holdings Corporation (SEM) shares have decreased by 5.4% following the release of its third-quarter 2025 results, primarily due to high expense levels and a decline in patient days affecting profitability in certain segments [1][9] - Despite these challenges, revenue growth in the Rehabilitation Hospital segment and an increased EPS guidance for 2025 provide some positive outlook [1][14] Financial Performance - Adjusted earnings per share (EPS) for Q3 2025 were reported at 23 cents, exceeding the Zacks Consensus Estimate by 27.8%, although this represents an 11.5% decline year over year [2][9] - Net operating revenues increased by 7.2% year over year to $1.4 billion, surpassing the consensus estimate by 2.9% [2][9] - Total costs and expenses rose to $1.3 billion, a 6% increase year over year, exceeding estimates due to higher service costs [3][9] Segment Performance - **Critical Illness Recovery Hospital**: Revenues reached $609.9 million, a 4.6% year-over-year increase, driven by a 2.1% rise in admissions and a 6.6% increase in revenue per patient day, despite a 1.9% decline in patient days [4][5] - **Rehabilitation Hospital**: Revenues grew by 16.2% year over year to $328.6 million, supported by an 11.2% increase in admissions and an 11.1% rise in patient days [6][7] - **Outpatient Rehabilitation**: Revenues totaled $325.4 million, a 4.3% year-over-year increase, aided by a 5.5% rise in visits, although revenue per visit decreased by 1% [8][9] Adjusted EBITDA - Adjusted EBITDA improved by 7.5% year over year to $111.7 million, exceeding estimates despite cost pressures [3][9] - Adjusted EBITDA for the Critical Illness Recovery Hospital segment was $56.1 million, a 10.5% year-over-year increase, but fell short of consensus estimates [5] - Adjusted EBITDA for the Rehabilitation Hospital segment rose by 13% to $68 million, surpassing estimates, while the adjusted EBITDA margin decreased by 60 basis points [7] Financial Position - As of September 30, 2025, Select Medical had cash and cash equivalents of $60.1 million, a slight increase from the end of 2024 [11] - Total assets amounted to $5.7 billion, up 1.4% from the end of 2024, while long-term debt increased by 3.1% to $1.7 billion [11] Shareholder Returns - The company repurchased shares worth approximately $96.5 million in the first nine months of 2025 [13] - A cash dividend of 6.25 cents per share was approved, to be paid on November 25, 2025 [13] 2025 Outlook - Management maintains revenue guidance of $5.3-$5.5 billion for 2025, reflecting a 4.1% increase from 2024 [14] - Adjusted EBITDA is expected to be between $510 million and $530 million, with EPS guidance raised to $1.14-$1.24 [14]

Core Insights - Surgery Partners is set to announce earnings results, with expectations of revenue growth slowing compared to the previous year [1][2] - The company reported a strong performance last quarter, exceeding revenue expectations by 1.2% [1] Revenue Expectations - Analysts expect Surgery Partners' revenue to grow 6.7% year on year to $821.8 million, down from a 14.3% increase in the same quarter last year [2] - The company reported revenues of $826.2 million last quarter, reflecting an 8.4% year-on-year increase [1] Earnings Performance - Adjusted earnings per share (EPS) are anticipated to be $0.16 [2] - Surgery Partners has missed Wall Street's revenue estimates three times in the past two years [3] Peer Comparison - In the outpatient & specialty care segment, Select Medical reported a 7.2% year-on-year revenue growth, while U.S. Physical Therapy saw a 17.3% increase [4] - Select Medical and U.S. Physical Therapy both experienced declines in share price following their earnings reports [4] Market Sentiment - There is positive sentiment in the outpatient & specialty care segment, with average share prices up 3.9% over the last month [5] - Surgery Partners' share price has increased by 11.1% during the same period, with an average analyst price target of $30.82 compared to the current share price of $21.93 [5]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - Identifying the right entry point for momentum stocks is challenging, and investors may end up with overvalued shares [1] Group 2: Bargain Momentum Stocks - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: Select Medical (SEM) Analysis - Select Medical (SEM) has a four-week price change of 2.5%, indicating growing investor interest [3] - SEM gained 7.8% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - SEM has a beta of 1.3, suggesting it moves 30% more than the market in either direction [4] Group 4: Valuation and Earnings Estimates - SEM has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - SEM is trading at a Price-to-Sales ratio of 0.31, meaning investors pay 31 cents for each dollar of sales, indicating a reasonable valuation [6] Group 5: Additional Investment Opportunities - Besides SEM, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Zacks offers over 45 Premium Screens to help identify potential winning stock picks based on various investing styles [8]