CARETRUST REIT INC (NYSE:CTRE) - A High Growth Momentum Stock with Strong Technical Setup

CARETRUST REIT INC (NYSE:CTRE) stands out as a compelling candidate for high-growth momentum investors, backed by strong earnings momentum and a favorable technical setup. The stock meets key criteria with a High Growth Momentum Rating of 7, a Technical Rating of 8, and a Setup Rating of 8, suggesting both fundamental strength and a timely entry opportunity.

Fundamental Growth Highlights

• Earnings Growth: CTRE has delivered impressive year-over-year EPS growth of 100% (TTM), with recent quarterly growth accelerating significantly—90.9% in the latest quarter and 800% three quarters ago.
• Revenue Expansion: Sales growth remains robust, with 80.6% year-over-year growth in the most recent quarter and a 43.3% increase over the past 12 months.
• Profit Margin Expansion: The company’s profit margins have expanded substantially, reaching 67.9% in the latest quarter, up from 15.5% a year ago.
• Analyst Revisions: Positive revisions in both EPS and revenue estimates for the next year (8.93% upward adjustments) reinforce confidence in continued growth.

Technical Strength & Setup Quality

• Strong Relative Performance: CTRE has outperformed 85% of all stocks in the past year and 91% of its peers in the Diversified REITs industry.
• Consolidation Pattern: The stock has been trading in a range between $27.27 and $29.75, with recent price action stabilizing near the middle, suggesting a potential breakout opportunity.
• Support & Resistance Levels: Key support lies at $28.25, while resistance is seen around $28.66-$29.29. A breakout above this zone could signal further upside.
• Volume & Liquidity: Average daily volume of 1.69 million shares ensures healthy liquidity for traders.

For a deeper technical breakdown, review the full technical report for CTRE.

Our High Growth Momentum Breakout Setups Screen provides more stocks with similar characteristics, updated daily.

Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.