Surgery Partners, Inc. (SGRY), listed on the U.S. healthcare sector under the medical care facilities industry, stands out for its potential upside of 66.63% according to analyst ratings. With a current market cap of $2 billion, this company operates a network of surgical facilities across the United States, offering a wide range of non-emergency surgical procedures.
Investors considering SGRY might find the company’s current share price of $15.44 appealing, especially when contrasted against its 52-week range between $15.06 and $25.87. The stock’s recent price change of -0.19 (-0.01%) suggests stability, though the low RSI of 42.68 indicates that the stock may be approaching oversold territory, potentially signaling a buying opportunity.
While the trailing P/E ratio is unavailable, the forward P/E ratio stands at 22.43, reflecting expectations of future earnings growth. However, it’s noteworthy that the company’s earnings per share (EPS) is -1.36, which suggests that profitability remains a challenge. Despite this, Surgery Partners is generating positive free cash flow of $131.26 million, a crucial metric for operational sustainability and potential reinvestment.
Analyst sentiment leans positively with 9 buy ratings and no sell recommendations, supporting a bullish outlook. The target price range of $18.00 to $33.00, with an average target of $25.73, indicates considerable room for appreciation from the current price, aligning with the potential upside of nearly 67%.
Performance metrics show a revenue growth of 6.60%, modest but steady, and a return on equity of 0.66%, which may not impress but shows a degree of positive return. The absence of dividends and a payout ratio of 0.00% suggest that the company is reinvesting earnings to fuel growth and manage operational expenses.
Technical indicators reveal a 50-day moving average of $18.81 and a 200-day moving average of $21.57, which the stock is currently trading below. The MACD of -0.71, slightly above the signal line of -0.75, might indicate a potential shift in momentum if upward movement continues.
Surgery Partners, headquartered in Brentwood, Tennessee, since 2004, provides a comprehensive network of ambulatory surgery centers and hospitals. The company’s focus on specialties like orthopedics, ophthalmology, and gastroenterology positions it well in the growing market for outpatient surgical services.
For investors, the decision to invest in SGRY should weigh the potential for substantial stock appreciation against the risks associated with its current financial metrics. As the company continues to navigate the complexities of the healthcare industry, its strategic focus on expanding surgical facilities and enhancing service offerings could drive future growth.
