Healthpeak (DOC): A Strong Buy for Value Investors Amid Favorable Valuation Metrics and Earnings Resilience

In an era where market volatility and economic uncertainty dominate investor sentiment, value investing principles remain a beacon for those seeking long-term, risk-adjusted returns. Healthpeak Properties, Inc. (DOC), an S&P 500-listed healthcare real estate investment trust (REIT), has emerged as a compelling candidate for value investors. With a forward price-to-earnings (P/E) ratio of 66.72 as of late 2025-slightly above its 5-year average of 65.66-and a Zacks Value Score of B, DOC aligns with key value investing criteria while offering a robust 6.7% dividend yield. This article examines why DOC's valuation metrics, earnings resilience, and sector fundamentals make it a strong buy for patient, income-focused investors.

Attractive Valuation Metrics and Zacks Style Scores

Despite a forward P/E ratio that may initially appear elevated, DOC's valuation is supported by its Zacks Value Score of B, which reflects undervaluation relative to metrics like the PEG ratio and Price/Sales ratio. The PEG ratio, which adjusts the P/E for earnings growth expectations, often justifies higher valuations for companies with strong fundamentals-a category DOC fits into given its dominance in the healthcare real estate sector. Additionally, DOC's VGM Score of B underscores its favorable blend of value, growth, and momentum qualities, further validating its appeal to value investors.

While the stock carries a Zacks Rank of #3 (Hold), this rating does not negate its intrinsic value. Instead, it suggests that the market may be underestimating DOC's long-term potential amid short-term headwinds. For instance, recent analyst revisions to DOC's fiscal 2025 earnings estimates have shown mixed signals: revenue forecasts were downgraded by -0.86% over three months, but the Zacks Consensus Estimate for earnings per share increased to $1.83, reflecting a modest upward revision. This divergence highlights the company's ability to maintain profitability despite macroeconomic pressures.

Earnings Resilience and Strategic Strength

Healthpeak's earnings resilience is rooted in its strategic focus on outpatient medical facilities, a sector experiencing sustained demand due to demographic shifts and healthcare cost containment. The company's third-quarter 2025 results demonstrated this strength, with a 71% AFFO (adjusted funds from operations) payout ratio and a net debt-to-EBITDA ratio of 5.3x, both of which indicate a conservative balance sheet and strong capacity to sustain its monthly dividend. These metrics are critical for REITs, where dividend sustainability is a primary concern for income investors.

Moreover, DOC's recent announcement of a $0.10167 per share monthly dividend-equating to an annualized yield of 6.7%-underscores its commitment to rewarding shareholders according to Seeking Alpha. This yield, combined with a payout ratio that remains well within safe thresholds for REITs, positions DOC as a rare high-yield stock with strong financial discipline. In a market where many high-dividend equities face sustainability risks, DOC's combination of yield and balance sheet strength is particularly compelling.

REIT Sector Fundamentals and Long-Term Tailwinds

The healthcare REIT sector has demonstrated remarkable resilience in 2025, outperforming broader market indices amid rising interest rates and economic uncertainty. This performance is driven by structural tailwinds, including the aging U.S. population-a phenomenon dubbed the "Silver Tsunami"-which is fueling demand for outpatient care facilities, senior housing, and medical office buildings. As a leader in this space, DOC is uniquely positioned to benefit from these long-term demographic trends.

Furthermore, DOC's strategic initiatives, such as its focus on high-growth markets and partnerships with leading healthcare providers, enhance its competitive positioning. These efforts have translated into consistent occupancy rates and rental income growth, reinforcing the company's ability to generate stable cash flows even in challenging economic environments.

Conclusion: A Strong Buy for Patient Value Investors

While DOC's Zacks Rank of #3 may suggest caution, its valuation metrics, earnings resilience, and sector fundamentals paint a compelling case for a strong buy rating. The stock's forward P/E ratio, though above historical averages, is justified by its strong Zacks Value and VGM Scores and its position in a defensive sector. For value investors seeking income and long-term capital appreciation, DOC's 6.7% yield, conservative leverage, and alignment with demographic-driven demand make it an attractive addition to a diversified portfolio.

As the healthcare REIT sector continues to navigate macroeconomic headwinds, DOC's disciplined approach to capital allocation and its focus on high-demand assets position it as a standout opportunity for those willing to look beyond short-term volatility.