Surgery Partners, Inc. (NASDAQ: SGRY) operates within the healthcare sector, specializing in medical care facilities across the United States. With a market capitalization of approximately $2.16 billion, the company provides a comprehensive network of surgical facilities and ancillary services, offering a variety of non-emergency surgical procedures. This diverse portfolio positions Surgery Partners as a significant player in the medical care facilities industry, catering to specialties such as orthopedics, ophthalmology, and gastroenterology.
SGRY’s current stock price of $16.72 reflects a slight decline of 0.03% from its previous session, fluctuating within a 52-week range of $15.06 to $25.87. This places the stock at an interesting juncture, especially given its potential upside of 53.87%, as suggested by the average analyst target price of $25.73. It’s noteworthy that the stock is trading below both its 50-day and 200-day moving averages, which stand at $19.22 and $21.74, respectively. The Relative Strength Index (RSI) at 39.90 indicates that SGRY is nearing oversold conditions, potentially presenting a buying opportunity for investors looking to capitalize on undervalued stocks.
Despite trading at a forward P/E ratio of 24.29, the company does not currently have trailing P/E, PEG, or price-to-book ratios available. This absence of traditional valuation metrics may be attributed to its negative earnings per share (EPS) of -1.36 and a return on equity (ROE) of just 0.66%. These figures underscore the challenges SGRY faces in achieving profitability, yet the company demonstrates robust revenue growth of 6.60%, coupled with a healthy free cash flow of approximately $131.26 million.
From an analyst perspective, Surgery Partners enjoys considerable support, with 9 buy ratings and 3 hold ratings, and no sell ratings. The bullish sentiment is further emphasized by the target price range of $18.00 to $33.00, suggesting significant potential for upward movement. The absence of a dividend yield indicates that the company is likely reinvesting earnings to fuel growth and expansion rather than returning capital to shareholders.
Technical indicators show a MACD of -0.66 and a signal line of -0.90, suggesting that SGRY is currently in a bearish trend. However, these technical patterns can shift rapidly, especially given the positive analyst outlook and the company’s strategic focus on expanding its surgical and ancillary services network.
Investors considering Surgery Partners should weigh the company’s growth potential against its current financial challenges. The healthcare sector’s stability, combined with SGRY’s strategic positioning in non-emergency surgical procedures, presents a compelling case for long-term value creation. As the company continues to navigate the complexities of the healthcare landscape, its ability to enhance profitability and leverage its free cash flow will be critical to unlocking shareholder value.
