Surgery Partners, Inc. (NASDAQ: SGRY) stands out in the healthcare sector with a promising growth trajectory underscored by a significant potential upside of 47.81%. As a key player in the medical care facilities industry, Surgery Partners operates a robust network of surgical facilities and ancillary services across the United States. Headquartered in Brentwood, Tennessee, the company’s expansive portfolio includes ambulatory surgery centers, surgical hospitals, and a range of specialty services that cater to diverse medical needs.
Currently trading at $20.85, SGRY has experienced a modest price change of 0.26 (0.01%) recently. Despite the current price being closer to the lower end of its 52-week range of $19.30 to $31.88, the company’s forward-looking metrics and analyst sentiments suggest a bullish outlook. Analysts have set an average target price of $30.82, indicating a substantial increase from the current levels. This optimistic forecast is supported by nine buy ratings, three hold ratings, and zero sell ratings, reflecting growing confidence in Surgery Partners’ strategic direction.
For investors focused on valuation, it is noteworthy that certain traditional metrics like the P/E Ratio and PEG Ratio are not available. However, the forward P/E stands at 20.69, providing a glimpse into the company’s earnings potential. Revenue growth at 8.40% further emphasizes the company’s ability to expand its market presence and enhance shareholder value.
Despite reporting a negative EPS of -1.43, Surgery Partners demonstrates financial resilience with a positive free cash flow of $162.32 million. This strong cash flow supports the company’s operational needs and potential investments in growth opportunities. Although the return on equity is a modest 0.12%, the company’s strategic investments in expanding its surgical network may yield higher returns in the long run.
Dividend-seeking investors may find it noteworthy that Surgery Partners does not currently offer a dividend yield, with a payout ratio of 0.00%. This suggests a focus on reinvesting earnings into the business to fuel further growth and expansion.
Technical indicators present a mixed picture. The stock’s 50-day and 200-day moving averages are $21.89 and $22.58, respectively, indicating the current price is below these averages. The RSI (14) at 38.86 suggests the stock is nearing oversold territory, potentially signaling a buying opportunity for value-focused investors. Meanwhile, the MACD and Signal Line, both in negative territory at -0.33 and -0.40, hint at a cautious short-term trend.
Surgery Partners’ operational focus on non-emergency surgical procedures across various specialties positions it well in the healthcare system, which continually adapts to changing patient needs and regulatory environments. As healthcare demand remains robust, particularly in specialized surgeries, Surgery Partners is strategically placed to capitalize on these trends.
For individual investors considering an entry into the healthcare sector, Surgery Partners, Inc. presents a compelling opportunity, supported by a strong network of facilities, a focus on strategic growth, and an attractive potential upside. As always, potential investors should consider their own risk tolerance and perform due diligence before making investment decisions.
