What Happened?

Shares of healthcare services company Select Medical (NYSE: SEM) jumped 14.3% in the morning session after RBC Capital raised its price target on the stock to $20 from $16, citing positive regulatory developments for the healthcare provider. The firm highlighted a decision by the Centers for Medicare & Medicaid Services (CMS) to delay a new rule, which was interpreted as a favorable sign for the industry. This move was expected to give Select Medical a one-time benefit in the third quarter of 2025, helping to offset some earlier financial difficulties.

Is now the time to buy Select Medical? Access our full analysis report here.

What Is The Market Telling Us

Select Medical’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. Moves this big are rare for Select Medical and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 28 days ago when the stock dropped 3.8% on the news that markets pulled back, reversing early gains, as investor sentiment remained cautious despite a softer-than-expected inflation reading. Stocks rose in the morning session after an unexpected drop in the Producer Price Index (PPI) for August signaled easing inflation and raised expectations for a potential Federal Reserve interest rate cut. The U.S. Bureau of Labor Statistics reported that the PPI, which measures wholesale prices, edged down 0.1% the previous month, contrary to analyst expectations for a 0.3% rise. This data gives the Federal Reserve more flexibility to consider lowering interest rates to stimulate the economy.

Select Medical is down 21.8% since the beginning of the year, and at $14.69 per share, it is trading 63.5% below its 52-week high of $40.20 from November 2024. Investors who bought $1,000 worth of Select Medical’s shares 5 years ago would now be looking at an investment worth $660.82.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.