Should You Investigate Sabra Health Care REIT, Inc. (NASDAQ:SBRA) At US$21.32?

Sabra Health Care REIT, Inc. (NASDAQ:SBRA), which is in the reits business, and is based in United States, saw a decent share price growth in the teens level on the NASDAQGS over the last few months. 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, could the stock still be trading at a relatively cheap price? Let’s examine Sabra Health Care REIT’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Sabra Health Care REIT

What is Sabra Health Care REIT worth?

Great news for investors – Sabra Health Care REIT is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $34.03, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Sabra Health Care REIT’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

Can we expect growth from Sabra Health Care REIT?

NasdaqGS:SBRA Past and Future Earnings, August 28th 2019
NasdaqGS:SBRA Past and Future Earnings, August 28th 2019

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. Sabra Health Care REIT’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since SBRA is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on SBRA for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SBRA. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.