CARETRUST REIT INC (NYSE:CTRE), a strong growth stock, setting up for a breakout.

In this article, we'll take a closer look at CARETRUST REIT INC (NYSE:CTRE) as a potential candidate for growth investing. While it's important for investors to conduct their own research, CARETRUST REIT INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Growth Assessment of NYSE:CTRE

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:CTRE, the assigned 8 reflects its growth potential:

• CTRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.83%, which is quite impressive.
• CTRE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.30% yearly.
• The Revenue has grown by 36.05% in the past year. This is a very strong growth!
• Measured over the past years, CTRE shows a quite strong growth in Revenue. The Revenue has been growing by 12.64% on average per year.
• CTRE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.31% yearly.
• Based on estimates for the next years, CTRE will show a quite strong growth in Revenue. The Revenue will grow by 16.04% on average per year.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Health Assessment of NYSE:CTRE

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:CTRE was assigned a score of 5 for health:

• CTRE has an Altman-Z score of 5.64. This indicates that CTRE is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 5.64, CTRE belongs to the top of the industry, outperforming 99.22% of the companies in the same industry.
• CTRE has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
• CTRE has a better Debt to Equity ratio (0.14) than 99.22% of its industry peers.
• CTRE's Current ratio of 1.94 is fine compared to the rest of the industry. CTRE outperforms 76.74% of its industry peers.
• With a decent Quick ratio value of 1.94, CTRE is doing good in the industry, outperforming 76.74% of the companies in the same industry.

Profitability Assessment of NYSE:CTRE

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CTRE has earned a 8 out of 10:

• The Return On Assets of CTRE (3.63%) is better than 84.50% of its industry peers.
• CTRE has a better Return On Equity (4.29%) than 68.22% of its industry peers.
• With an excellent Return On Invested Capital value of 4.56%, CTRE belongs to the best of the industry, outperforming 87.60% of the companies in the same industry.
• CTRE had an Average Return On Invested Capital over the past 3 years of 5.24%. This is above the industry average of 3.19%.
• With an excellent Profit Margin value of 42.07%, CTRE belongs to the best of the industry, outperforming 91.47% of the companies in the same industry.
• In the last couple of years the Profit Margin of CTRE has grown nicely.
• CTRE's Operating Margin of 64.83% is amongst the best of the industry. CTRE outperforms 99.22% of its industry peers.
• CTRE's Operating Margin has improved in the last couple of years.
• CTRE has a better Gross Margin (98.07%) than 98.45% of its industry peers.

How does the Setup look for NYSE:CTRE

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:CTRE is 7:

Although the technical rating is bad, CTRE does present a nice setup opportunity. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 26.08. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 25.18, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of CTRE

Our latest full technical report of CTRE contains the most current technical analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.