Zacks Research Downgrades Select Medical to Strong Sell Rating

The healthcare provider's stock faces a downgrade amid concerns over its financial performance.

Published on Feb. 28, 2026

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Zacks Research has downgraded shares of Select Medical (NYSE:SEM) from a "hold" rating to a "strong sell" rating in a research note issued to investors on Thursday. The downgrade comes as the company reported weaker-than-expected financial results in its latest quarter, missing analyst estimates.

Why it matters

The downgrade by Zacks Research reflects growing concerns about Select Medical's financial health and performance. As a major provider of long-term acute care and inpatient rehabilitation services, the company's outlook is seen as an important indicator for the broader healthcare industry.

The details

In its research note, Zacks cited Select Medical's recent quarterly results, where the company reported earnings per share of $0.16, missing the consensus estimate of $0.23. The firm also noted the company's guidance for fiscal year 2026, which it said was below market expectations. Zacks said the downgrade reflects its view that Select Medical's stock is overvalued and faces challenges ahead.

  • Select Medical reported its latest quarterly results on February 19, 2026.
  • Zacks Research issued the downgrade on February 28, 2026.

The players

Select Medical

A leading provider of specialized healthcare services in the United States, operating long-term acute care hospitals and inpatient rehabilitation facilities.

Zacks Research

An equity research firm that provides investment research and analysis to investors.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

The downgrade of Select Medical's stock by Zacks Research highlights the challenges facing the healthcare provider, as it grapples with weaker-than-expected financial performance. This development will likely be closely watched by investors and analysts as an indicator of broader trends in the industry.