Surgery Partners, Inc. (NASDAQ: SGRY), a significant player in the healthcare industry, operates a robust network of surgical facilities across the United States. As investors seek opportunities in the medical care facilities sector, Surgery Partners stands out with promising potential for growth and an attractive upside of 36.62%.
With a market capitalization of $2.91 billion, Surgery Partners is strategically positioned within the healthcare sector, specializing in ambulatory surgery centers and surgical hospitals. The company offers a broad range of services, including orthopedics, pain management, ophthalmology, gastroenterology, and general surgery. This diversity in service offerings not only strengthens its market position but also provides resilience against sector-specific downturns.
Currently trading at $22.69, Surgery Partners’ stock price sits within its 52-week range of $19.30 to $33.13. While the stock experienced no change in its recent price movement, this stability could be indicative of a consolidation phase, suggesting potential for upward momentum. The average target price set by analysts is $31.00, which aligns with the calculated potential upside, offering a compelling case for growth-oriented investors.
Despite the absence of a trailing P/E ratio and PEG ratio, the company’s forward P/E of 22.36 signals investor expectations of future earnings growth. The revenue growth rate of 8.40% further underpins this optimistic outlook. However, a net income figure and positive EPS remain elusive, with the latter currently at -1.43. This negative EPS highlights operational challenges but also presents an opportunity for improvement, which could be a catalyst for future growth.
Surgery Partners’ return on equity (ROE) stands at 0.12%, indicating the company’s efficiency in generating profits from shareholders’ equity is minimal. However, the company’s ability to generate substantial free cash flow, amounting to over $162 million, provides a solid foundation for reinvestment and growth initiatives.
The company does not currently offer dividends, reflected by a payout ratio of 0.00%. This approach allows Surgery Partners to reinvest earnings back into the business, which can drive long-term value creation and enhance shareholder returns through stock price appreciation.
From an analyst perspective, Surgery Partners enjoys strong support with 10 buy ratings, 3 hold ratings, and no sell ratings. The consensus among analysts suggests confidence in the company’s strategic direction and growth potential. The target price range of $24.00 to $36.00 implies room for significant appreciation from the current levels.
On the technical front, the stock’s 50-day moving average of $22.31 and 200-day moving average of $22.77 suggest a near-term equilibrium, with an RSI of 55.73 indicating neither overbought nor oversold conditions. The MACD of 0.14, slightly below its signal line of 0.20, hints at potential bullish momentum.
Surgery Partners, with its diversified service offerings and strategic focus on non-emergency surgical procedures, presents a unique investment opportunity in the healthcare sector. The company’s substantial upside potential, coupled with strong analyst support, makes it an intriguing option for investors seeking to capitalize on growth prospects within the medical care facilities industry. As the company continues to navigate operational challenges and capitalize on market opportunities, it remains a stock to watch closely.
