Surgery Partners (SGRY) drew investor attention after its shares climbed 7.7% in the last session on heavy trading, as the market looked ahead to fourth quarter 2025 results and modestly higher revenue expectations.

That jump in trading came after a stronger 7 day share price return of 14.01%. However, the 1 year total shareholder return of 40.24% and 5 year total shareholder return of 60.56% indicate that momentum has been relatively weak over longer periods, despite recent interest around upcoming results.

If this move in Surgery Partners has you thinking about where else growth and risk are being repriced, it could be worth checking our screener of 25 healthcare AI stocks as a starting list of ideas.

With Surgery Partners trading at US$15.46, alongside analyst targets that are currently higher and a track record of weak multi year returns, it raises the question of whether there is genuine value here or if the market is already pricing in future growth.

Most Popular Narrative: 39.3% Undervalued

At $15.46, Surgery Partners is trading well below the most followed fair value estimate of $25.45, which is built using a discount rate of 8.60% and detailed long term forecasts.

Disciplined execution on M&A and portfolio optimization, including accretive acquisitions and potential asset sales or health system partnerships, should enhance margin expansion, accelerate deleveraging, and improve free cash flow conversion, supporting improvements in net margins and long-term earnings power.

Curious what has to happen for that higher value to hold up? The narrative leans on faster revenue growth, a sizeable earnings swing, and a richer future profit multiple. The exact mix of assumptions might surprise you.

Result: Fair Value of $25.45 (UNDERVALUED)

However, the story could change quickly if rising interest expenses or slower than expected acquisitions continue to weigh on cash flow, margins, and earnings visibility.

Build Your Own Surgery Partners Narrative

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

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Surgery Partners.

Looking for more investment ideas?

If you are serious about sharpening your portfolio, do not stop at one story. Use the screener to quickly spot other opportunities that might fit your style.

• Target potential mispricings by scanning our list of 53 high quality undervalued stocks that pair solid fundamentals with what could be appealing entry points.
• Prioritize resilience and support a more stable experience by checking out 84 resilient stocks with low risk scores, focused on companies with more measured risk profiles.
• Identify less-followed opportunities by reviewing a screener containing 23 high quality undiscovered gems that highlights quality names many investors may be overlooking.

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.