Select Medical's (SEM) Concentra Submits Confidential IPO Filing

Select Medical Holdings Corporation’s SEM wholly-owned subsidiary, Concentra, has recently taken a significant step toward a potential initial public offering (IPO) by confidentially submitting a draft registration statement on Form S-1 to the U.S. Securities and Exchange Commission (SEC). The details regarding the number of shares to be offered and the price range for the offering are yet to be finalized.

The move from SEM highlights the recovery in the U.S. IPO market, especially for healthcare companies. Utah-based nursing home operator PACS Group submitted the necessary documentation for an IPO last week. Another company, Auna, with a strong presence in the Latin American market, is poised to list on the NYSE soon.

Toward the beginning of this year, Select Medical revealed its intention to separate the occupational health services business, which was expected to close by late 2024. Following the separation, Select Medical shareholders were set to retain their current SEM shares and receive a pro-rata distribution of Concentra stock. The transaction was expected to be tax-free for both Select Medical and its shareholders.

In 2015, a joint venture between Select Medical and private equity firm Welsh, Carson, Anderson & Stowe bought Concentra from Humana. Later, in 2021, SEM upped its stake in Concentra to 100%. The Concentra unit generated around 28% of SEM’s revenues in 2023. The segment comprised 544 occupational health centers in 41 states and 150 onsite clinics at employer worksites as of Dec 31, 2023. It also offers telemedicine services for work-related illnesses.

Price Performance

Select Medical’s shares have gained 12.9% in the past year compared with the 6% increase of the industry it belongs to.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Select Medical currently has a Zacks Rank #4 (Sell).

Enhancing the array of healthcare options, some better-ranked and promising stocks in the Medical sector are Universal Health Services, Inc. UHS, The Cigna Group CI and Health Catalyst, Inc. HCAT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Universal Health Services’ 2024 bottom line suggests 22.4% year-over-year growth. UHS has witnessed four upward estimate revisions over the past 30 days against one movement in the opposite direction. It beat earnings estimates in all the last four quarters, with an average surprise of 5.9%.

The Zacks Consensus Estimate for Cigna’s full-year 2024 earnings indicates a 13% year-over-year increase. CI beat earnings estimates in each of the past four quarters, with an average surprise of 2.9%. The consensus mark for revenues suggests 20.4% growth from the year-ago period.

The Zacks Consensus Estimate for Health Catalyst’s 2024 full-year earnings implies a 113.3% increase from the year-ago reported figure. HCAT beat earnings estimates in each of the last four quarters, with an average surprise of 247.9%. The consensus mark for its current-year revenues is pegged at $308.2 million, which indicates a 4.2% year-over-year increase.

4 Oil Stocks with Massive Upsides

Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold." 

Zacks Investment Research has just released an urgent special report to help you bank on this trend. 

In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations. 

Download your free report now to see them.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Universal Health Services, Inc. (UHS) : Free Stock Analysis Report

Cigna Group (CI) : Free Stock Analysis Report

Select Medical Holdings Corporation (SEM) : Free Stock Analysis Report

Health Catalyst, Inc. (HCAT) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.