Dane Bowler
Value, hedge fund analyst, REITs, long/short equity

Finding Value In The Promising Healthcare Sector With Brookdale Senior Living

The healthcare sector touts impressive demographic data suggesting a continued rise in the 80+ population. This extra demand is bolstered by the government's continued support of Medicare and Medicaid which survived sequestration unscathed. The healthcare REIT sector is fundamentally desirable and investors know it as evidenced by the average FFO trading multiple of 18.1. This article will detail Brookdale Senior Living (NYSE:BKD) as a value-friendly alternative to gain exposure to a powerful industry. We will begin with an overview of the sector's valuation over the past year to demonstrate the importance of value when investing in healthcare stocks.

Historical healthcare valuation

Among healthcare REITs, there is a powerful correlation between cheap valuation and subsequent performance. I would posit...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details