Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, health care facility operator Sun Healthcare (Nasdaq: SUNH) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Sun Healthcare's and see what CAPS investors are saying about the stock right now.

Sun Healthcare facts

Headquarters (Founded)

Irvine, Calif. (1989)

Market Cap

$599.8 million


Health-care facilities

Trailing-12-Month Revenue

$1.9 billion


CEO Richard Matros (since 2001)
CFO L. Bryan Shaul (since 2005)

Return on Equity (Average, Past 3 Years)


Compound Annual Revenue Growth (Over Past 3 Years)



$40.0 million / $156.4 million


Assisted Living Concepts (NYSE: ALC)
The Ensign Group (Nasdaq: ENSG)
Sunrise Senior Living (NYSE: SRZ)
National Healthcare (NYSE: NHC)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98% of the 336 members who have rated Sun Healthcare believe the stock will outperform the S&P 500 going forward. These bulls include jsGreenmachine and All-Star TMFDeej, who is ranked in the top 1% of our community.

Less than two months ago, jsGreenmachine brought Sun Healthcare's gloomy price action to our community's attention: "[B]eaten down health care stock. Very well managed company in demographic positive industry."

Health-care facilities offer an obvious play on the aging baby boomer demographic, and Sun Healthcare remains one of our community's favorite ways to do it. Despite showing a flat return over the past year, Sun Healthcare has managed to retain a five-star rating throughout the same period. To be sure, other than the embattled Sunrise Senior Living, Sun Healthcare's operating margins are consistently lower than several of its foes like Ensign, Assisted Living, and National Healthcare. However, with Sun Healthcare's recent decision to split its operations into two publicly traded companies (a REIT and a health-care services business), CAPS All-Star TMFDeej believes plenty of value is about to be unlocked:

Sun Health has been beaten up along with the rest of health care. Not only is its stock now cheap, but the company has a strong demographic tailwind at its back.

I like Sun's planned spin-off of its real estate assets into a REIT. One would think that the demand for nursing homes and assisted living facilities will only grow in the coming years as the Baby Boomers age. Also, the spin-off will be small so it might come under selling pressure from funds that don't want to hold onto it. As a REIT one would think that it will pay a solid dividend as well. I'm adding [Sun Health care] to my CAPS portfolio as a solid investment idea in its own right as well as a reminder for me to follow-up on the REIT after it has been spun-off.

What do you think about Sun Healthcare, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool's disclosure policy always gets a perfect score.