Surgery Partners (SGRY): Examining Valuation Potential After Recent Share Rebound

Surgery Partners (SGRY) shares have shown mixed momentum lately. The stock has recovered nearly 9% over the past month after a rough quarter. Investors are weighing recent trends and fundamentals as they consider potential directions for the company.

See our latest analysis for Surgery Partners.

While Surgery Partners’ 1-month share price return of nearly 9% hints at renewed momentum, the bigger picture shows a challenging stretch, with its 1-year total shareholder return down over 31%. Investors seem to be reassessing the company’s prospects after a tough quarter, with signs that sentiment could be turning, though there is still ground to recover in both the short and long term.

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With shares still trading well below analyst targets and a sizable intrinsic discount remaining, the question is whether markets are still too cautious or if future growth is already fully reflected in the current price.

Most Popular Narrative: 30.6% Undervalued

According to the leading narrative, Surgery Partners' fair value sits meaningfully higher than its last close price. With analyst expectations climbing, this thesis draws on projected earnings power and industry shifts that are set to reshape the company’s outlook.

The accelerated migration of high-acuity surgical procedures (particularly orthopedics and joint replacements) from hospitals to outpatient settings is strengthening. Surgery Partners is demonstrating outperformance through investments in robotics and facility capabilities, which positions the company to capitalize on expanding case volumes and higher-revenue procedures. This directly supports long-term revenue and EBITDA growth.

Read the complete narrative.

Want to know why this narrative sees so much value ahead? There is one critical projection powering the premium: a profit swing and bold margin expansion. Which forecasted leap sets this price target? Dive in to uncover the surprising assumptions driving this valuation.

Result: Fair Value of $31 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising debt costs and slower-than-expected acquisitions could weigh on profit forecasts, which may challenge the pace of Surgery Partners’ expected turnaround.

Find out about the key risks to this Surgery Partners narrative.

Build Your Own Surgery Partners Narrative

If you see the outlook differently or want to uncover your own insights, the platform lets you craft a personalized narrative using the same detailed data, all in just a few minutes, Do it your way

A great starting point for your Surgery Partners research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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