CARETRUST REIT INC (NYSE:CTRE) is a candidate for high growth investors. Here's why.

We've identified CARETRUST REIT INC (NYSE:CTRE) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NYSE:CTRE for further developments.

Technical Analysis Observations

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Taking everything into account, CTRE scores 7 out of 10 in our technical rating. In the past year, CTRE was one of the better performing stocks in the market. The medium term picture became unclear, although we see some improvement happening in recent action.

• The long term trend is still neutral, but the short term trend is positive, so the stock is getting more and more appreciated by traders and investors.
• Looking at the yearly performance, CTRE did better than 88% of all other stocks.
• CTRE is part of the Diversified REITs industry. There are 130 other stocks in this industry. CTRE outperforms 86% of them.
• In the last month CTRE has a been trading in the 25.82 - 29.49 range, which is quite wide. It is currently trading near the high of this range.
• CTRE is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.

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

How do we evaluate the setup for CTRE?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. CTRE currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, CTRE also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 28.31, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Growth Examination for CTRE

ChartMill employs its own High Growth Momentum Rating (HGM) system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth and profitability factors, such as EPS and revenue growth, as well as accelleration, surprises and revision history. CTRE has earned a 6:

Explosive Earnings Growth

• In the most recent financial report, CTRE reported a 45.45% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• The 1-year EPS growth of CTRE (70.83%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• CTRE has achieved 16.32% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
• The 1-year revenue growth of CTRE (36.05%) has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and expand its market share.
• The average next Quarter EPS Estimate by analysts was adjusted by 16.21%, reflecting the evolving market expectations for the company's EPS growth.

Financial Strength & Profitability

• CTRE has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• CTRE has experienced growth in its profit margin over the past year, reflecting improved operational performance.
• With a Debt/Equity ratio of 0.14, CTRE demonstrates prudent financial management.

Strong Market Performance

• CTRE has achieved an impressive Relative Strength (RS) rating of 88.11, showcasing its ability to outperform the broader market.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

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.