Momentum Stock Watch: Surgery Partners CS (SGRY)

Company Profile:

Surgery Partners, Inc., through its subsidiaries, owns and operates a network of surgical facilities and related services in the United States. The company operates through three segments: Surgical Facility Services, Ancillary Services, and Optical Services. As of March 31, 2020, the company owned or operated a portfolio of 127 surgical facilities, including 111 ambulatory surgical centers and 16 surgical hospitals in 30 states. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee.

Recent News:

The company reported revenues for the second quarter of 2021 increased 45.0% to $543.3 million from $374.7 million for the second quarter of 2020. For the second quarter of 2021, the Company’s net loss attributable to common stockholders and Adjusted EBITDA was $26.9 million and $75.9 million, respectively, compared to $42.2 million and $58.2 million for the same period last year.

On May 28, 2021, the company and UCI Health have announced a new strategic partnership that marks an expansion of community access to outpatient surgical facilities for nearly 4 million residents throughout Orange County, western Riverside County and southern California.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

SGRY’s strengths can be seen in its strong growth and better efficiency compared with its peers. Its revenue has increased over recent several years. Technical indicators signal the bullish signs, as there is a bullish crossover in the Stochastic oscillator, the MACD is trying to cross back up and the RSI stands at 46.62 with positive bias. We rate Surgery Partners CS (SGRY) a STRONG BUY.