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 pattern. The stock meets criteria for both fundamental growth and technical strength, making it worth a closer look.

Growth Momentum Highlights

• Earnings Growth: CTRE has demonstrated impressive year-over-year EPS growth of 86.3% (TTM), with recent quarterly growth accelerating significantly. The latest quarter saw EPS growth of 59.1%, following even stronger performances in prior quarters.
• Revenue Expansion: Sales growth remains robust, with a 43.3% increase over the past year. Quarterly revenue growth has been consistently strong, including a 33.9% rise in the most recent quarter.
• Profit Margin Improvement: The company’s profit margin has expanded considerably, reaching 67.9% in the latest quarter, up from 59.8% in the prior quarter and 15.5% a year ago.
• Analyst Revisions: Positive revisions in earnings and revenue estimates suggest continued confidence in CTRE’s growth trajectory, with next-year EPS estimates revised up by 2.7% over the past three months.

Technical Strength & Setup Quality

• Technical Rating (8/10): CTRE’s technical health is strong, with both short-term and long-term trends positive. The stock is outperforming 88% of its peers in the Diversified REITs industry.
• Setup Rating (7/10): The stock is consolidating within a defined range ($27.81 - $31.20), showing reduced volatility—a key characteristic of a breakout setup. A recent Pocket Pivot signal further supports accumulation.
• Support Levels: Multiple support zones exist below the current price, including a key area between $30.60 - $31.08, providing a clear stop-loss reference for traders.

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

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Disclaimer

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