National Health Investors (NHI) is back in focus after completing US$89.2 million in healthcare investments and reporting quarterly earnings per share above analyst expectations, even as revenue came in below forecasts.

Those Q3 earnings and the US$89.2 million of fresh healthcare investments come as the share price trades near its recent 52 week high of US$80.68. The 90 day share price return of 6.40% and 1 year total shareholder return of 21.41% point to momentum that has been building rather than fading.

If you are comparing National Health Investors with other healthcare focused names, it could be a good moment to scan healthcare stocks as a way to spot similar income and growth stories across the sector.

With NHI trading close to its 52 week high, a 1 year total return above 20% and an indicated intrinsic discount plus room to the latest analyst target, you have to ask: is there still upside here, or is the market already pricing in future growth?

Most Popular Narrative: 6.8% Undervalued

The most followed narrative sees fair value for National Health Investors at US$86 per share compared with the last close of US$80.17. This frames the debate around whether the current price fully reflects its long term potential.

Accelerating growth in the 75+ U.S. population and increased demand for senior housing are associated with higher occupancy rates and pricing power in NHI's SHOP portfolio, evidenced by recent quarter-over-quarter rises in both occupancy and RevPOR. This is cited as a factor expected to support sustained revenue and net operating income (NOI) growth.

Curious what sits behind that projected cash flow ramp, the margin uplift and the higher P/E the narrative leans on? The full set of revenue, earnings and profitability assumptions paints a much more detailed picture than a single fair value number on its own.

Result: Fair Value of $86 (UNDERVALUED)

However, softer SHOP occupancy and the risk of key tenants or new acquisitions underperforming could quickly challenge those cash flow and fair value assumptions.

Build Your Own National Health Investors Narrative

If you see the numbers differently or prefer to test your own assumptions, you can build a custom National Health Investors view in just a few minutes, starting with Do it your way.

A great starting point for your National Health Investors research is our analysis highlighting 3 key rewards and 2 important warning signs 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.