Core Viewpoint - Select Medical Holdings Corporation (SEM) is expected to report its fourth-quarter 2025 results on February 19, 2026, with earnings estimated at 23 cents per share and revenues at $1.36 billion [1]. Financial Performance Estimates - The fourth-quarter earnings estimate has decreased by one cent over the past 60 days, indicating a year-over-year increase of 27.8% [2]. - The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year growth of 3.7% [2]. - For the full year 2025, the revenue estimate is $5.42 billion, reflecting an 18.2% year-over-year decline, while the earnings per share estimate is $1.23, implying a rise of 30.9% from the previous year [3]. Earnings Surprise History - Select Medical's earnings have surpassed the Zacks Consensus Estimate in two of the last four quarters, missing in the other two, with an average surprise of 8.7% [3]. Earnings Prediction Model - The current model does not predict an earnings beat for SEM, as it has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [4]. Segment Performance Insights - The Critical Illness Recovery segment is projected to see a 2.1% year-over-year revenue growth in Q4, with revenues per Patient Day expected to increase by 2.8% [6]. - The Rehabilitation Hospital segment's revenues are anticipated to rise by 11.1% in Q4, with revenues per Patient Day expected to increase by 5.9% [8]. - The Outpatient Rehabilitation segment's adjusted EBITDA is projected to surge by 55.8% year-over-year, although revenues per Visit are expected to dip by 0.8% [9]. Operational Metrics - A 3.8% increase in admissions is expected in Q4, with an occupancy rate projected at 67.3% [7]. - The Rehabilitation Hospital segment is expected to see admissions grow by 10.4% year-over-year, with an occupancy rate expanding by 320 basis points to 84.2% [8]. - Total operating expenses are estimated to decrease to $1.28 billion, primarily due to lower general and administrative expenses, despite a nearly 6% growth in interest expense [10]. Peer Performance Comparison - Ensign Group reported a fourth-quarter adjusted EPS of $1.82, beating estimates by 4%, with a 19.5% year-over-year improvement in earnings [12]. - Encompass Health reported an adjusted EPS of $1.46, exceeding estimates by 13.2%, with a 24.8% year-over-year increase in earnings [13].

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]

Industry Overview - The Medical sector is undergoing a significant transformation as it approaches 2026, shifting from a defensive haven to a growth engine driven by innovation and demographic demand [1] - Key trends include the integration of artificial intelligence into clinical workflows, enhancing efficiency and precision in diagnostics and drug discovery [2] - The industry faces cost inflation and regulatory changes, pushing providers towards value-based care and operational innovation, while aging populations and chronic diseases sustain long-term demand [3] Stock Recommendations - Analysts are bullish on three medical stocks: Cencora, Inc. (COR), Addus HomeCare Corporation (ADUS), and Select Medical Holdings Corporation (SEM), due to their operational strength and long-term growth potential [4][5] - All three stocks have a Zacks Rank 2 (Buy), a VGM Score of A, and a market capitalization exceeding $1 billion, with over 70% of brokers rating them as a strong buy or buy [6] Cencora, Inc. (COR) - Cencora is benefiting from higher unit volume and improved sales of GLP-1 drugs and specialty products, with strong performance in Canada and strategic investments in European distribution [10] - The Zacks Consensus Estimate for COR's fiscal 2026 earnings is $17.62 per share, indicating a 10.1% year-over-year increase, with six upward estimate revisions in the past 60 days [12] Addus HomeCare Corporation (ADUS) - Addus provides personal care services to elderly and chronically ill individuals, with stable hiring trends and growing market size due to the cost benefits of home-based healthcare [13] - The Zacks Consensus Estimate for ADUS's 2025 earnings is $6.19 per share, signaling a 17.7% year-over-year growth, followed by a 10.7% increase in 2026 to $6.85 [15] Select Medical Holdings Corporation (SEM) - Select Medical operates critical illness recovery facilities and rehabilitation clinics, with strategic expansions and rising patient admissions driving performance [16] - The Zacks Consensus Estimate for SEM's 2025 earnings is $1.23 per share, indicating a 30.9% year-over-year jump, followed by a 9.9% increase in 2026 to $1.36 [18]

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].

Group 1 - Select Medical Holdings Corporation (NYSE:SEM) is recognized as one of the best dividend stocks to buy, with an average price target suggesting a 34% upside and a Street high indicating a 41% upside [1][2] - The company reported Q3 2025 results with revenue reaching $1,363.4 million, reflecting a year-over-year increase of 7.2%. Revenue growth was noted in critical illness recovery hospitals (4.6%), rehabilitation hospitals (16.2%), and outpatient rehabilitation segments (4.3%) [2] - A cash dividend of $0.0625 per share was paid on November 25, indicating the company's commitment to returning value to shareholders [2] Group 2 - The board announced a share repurchase initiative with a capacity of up to $1 billion, extending the program's duration to December 31, 2027 [3] - For FY2025, Select Medical estimates total revenue between $5.3 billion and $5.5 billion, with Adjusted EBITDA projected between $510 million and $530 million, and diluted EPS expected to range from $1.14 to $1.24 [3] - Select Medical operates hospitals and outpatient clinics across the U.S., specializing in various medical conditions including heart and lung issues, neurological and orthopedic problems, cancer, work-related injuries, pediatric care, and sports rehabilitation [4]

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]