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, combining strong earnings momentum with a favorable technical breakout setup. The stock meets key criteria for growth investing while also presenting a well-defined consolidation pattern, suggesting potential upside.

Growth Momentum Highlights

• Earnings Growth: CTRE reported a trailing twelve-month (TTM) EPS growth of 86.3%, with recent quarterly EPS growth accelerating to 59.1% in the latest quarter.
• Sales Momentum: Revenue growth remains strong, with TTM sales up 43.3% and quarterly sales expanding by 33.9% year-over-year.
• Profit Margin Expansion: The company’s profit margin improved significantly, reaching 67.9% in the most recent quarter, up from 15.5% a year ago.
• Analyst Revisions: Upward revisions in both EPS and revenue estimates for the next year suggest continued optimism, with a 8.5% increase in projections over the past three months.

Technical Strength & Setup

CTRE’s technical profile reinforces its appeal:

• Technical Rating (7/10): The stock is in a long-term uptrend, outperforming 89% of its peers in the Diversified REITs industry.
• Setup Quality (8/10): Recent price action shows consolidation within a $27.72 - $29.75 range, with reduced volatility and clear support near $29.13.
• Breakout Potential: A move above $29.36 could signal a breakout, with resistance at $29.35 providing a near-term target.

For a deeper look at the technicals, review the full technical report for CTRE.

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Disclaimer

This is not investment advice. Always conduct your own research and consider risk management before making investment decisions.