Surgery Partners, Inc. (NASDAQ: SGRY) is gaining attention in the healthcare sector, boasting a significant 42.02% potential upside based on analyst ratings. Headquartered in Brentwood, Tennessee, and founded in 2004, the company operates a network of surgical facilities across the United States, specializing in non-emergency procedures. As the healthcare industry evolves, SGRY presents a compelling opportunity for investors seeking growth in the medical care facilities segment.
Surgery Partners’ market capitalization stands at $2.78 billion. The current stock price is $21.70, showing a marginal decrease of $0.23 or 0.01%. Despite this slight dip, the stock’s 52-week range, from $19.30 to $31.43, suggests room for recovery and growth. Especially notable is the average target price of $30.82 set by analysts, indicating a substantial upside from the current levels.
The company’s valuation metrics present a mixed picture. While the forward P/E ratio of 21.53 offers a glimpse into future earnings potential, several other metrics remain unavailable, including the trailing P/E, PEG ratio, and price/book ratio. This lack of data suggests a complex financial backdrop, possibly influenced by the company’s ongoing investments and operational strategies.
Performance metrics reveal an 8.40% revenue growth, a promising indicator of the company’s capacity to expand its market presence. However, Surgery Partners reported an earnings per share (EPS) of -1.43, reflecting challenges in achieving profitability. Return on equity stands at a modest 0.12%, signaling that the company is in a phase of reinvestment rather than yielding immediate returns to shareholders. Notably, Surgery Partners generated a free cash flow of approximately $162.3 million, underscoring its ability to manage operations and fund future growth without relying heavily on external financing.
Investors should also note the company’s dividend policy. With a dividend yield marked as N/A and a payout ratio of 0.00%, the company currently prioritizes reinvestment over distributing profits, aligning with its growth-centric strategy.
Analyst sentiment around Surgery Partners is predominantly positive, with nine buy ratings, three hold ratings, and no sell ratings. This consensus underscores confidence in the company’s strategic direction and market position. The target price range of $24.00 to $36.00 further emphasizes the anticipated appreciation in SGRY’s stock value.
Technical indicators provide additional insights for investors. The 50-day and 200-day moving averages, at $21.71 and $22.65 respectively, suggest that the stock is currently trading near its short-term average, with potential bullish momentum. The RSI (Relative Strength Index) of 29.37 indicates that the stock is oversold, which could be a signal for a potential rebound. The MACD (Moving Average Convergence Divergence) of 0.23 and the signal line of 0.12 suggest a positive trend in price movement.
Surgery Partners, Inc. offers a diversified portfolio of services, including ambulatory surgery centers, surgical hospitals, and ancillary services across various specialties such as orthopedics, ophthalmology, and gastroenterology. This diversification provides a robust foundation to capitalize on the growing demand for outpatient surgical procedures in the U.S.
For investors interested in the healthcare sector, Surgery Partners presents a unique blend of growth potential and strategic positioning. While challenges remain, particularly in profitability metrics, the company’s robust revenue growth, analyst confidence, and technical indicators suggest a promising outlook. Investors should consider these factors alongside broader market conditions when evaluating SGRY as a potential addition to their portfolios.
