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Sabra Health Care REIT, Inc. (NASDAQ:SBRA), which is in the reits business, and is based in United States, saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at Sabra Health Care REIT’s outlook and value based on the most recent financial data to see if the opportunity still exists.
What’s the opportunity in Sabra Health Care REIT?
Good news, investors! Sabra Health Care REIT is still a bargain right now. According to my valuation, the intrinsic value for the stock is $29.42, but it is currently trading at US$20.44 on the share market, meaning that there is still an opportunity to buy now.
What does the future of Sabra Health Care REIT look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Sabra Health Care REIT, at least in the near future.
What this means for you:
Are you a shareholder? Although SBRA is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to SBRA, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you’ve been keeping an eye on SBRA for a while, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Sabra Health Care REIT. You can find everything you need to know about Sabra Health Care REIT in the latest infographic research report. If you are no longer interested in Sabra Health Care REIT, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.