Is VENTAS INC (NYSE:VTR) suited for high growth investing?

We've identified VENTAS INC (NYSE:VTR) 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:VTR for further developments.

Analyzing the Technical Aspects

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

We assign a technical rating of 8 out of 10 to VTR. In the last year, VTR was one of the better performers, but we do observe some doubts in the very recent evolution.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• Looking at the yearly performance, VTR did better than 95% of all other stocks. We also observe that the gains produced by VTR over the past year are nicely spread over this period.
• VTR is one of the better performing stocks in the Diversified REITs industry, it outperforms 95% of 130 stocks in the same industry.
• VTR is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so VTR slightly outperforms the market at the moment.
• In the last month VTR has a been trading in the 60.15 - 71.36 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

How do we evaluate the setup for VTR?

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 VTR is 7:

Besides having an excellent technical rating, VTR also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 70.47. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 67.29, a Stop Loss order could be placed below this zone.

Looking into the high growth metrics of VTR

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. VTR scores a 6 out of 10:

Explosive Earnings Growth

• The earnings per share (EPS) of VTR have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 157.0% increase. This reflects the company's ability to improve its profitability over time.
• Accelerating EPS growth for VTR: the current Q2Q growth of 157.0% exceeds the previous quarter Q2Q growth of 128.0%.
• EPS acceleration happened 3 quarters in a row.
• The 1-year EPS growth of VTR (205.0%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• Accelerating Sales growth for VTR: the current Q2Q growth of 10.53% exceeds the previous quarter Q2Q growth of 7.52%.
• The average next Quarter EPS Estimate by analysts was adjusted by 275.0%, reflecting the evolving market expectations for the company's EPS growth.
• VTR has consistently surpassed EPS estimates in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.

Financial Strength & Profitability

• VTR has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• With a favorable trend in its free cash flow (FCF) over the past year, VTR demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• VTR has a Debt/Equity ratio of 1.06, indicating a balanced approach to financing growth.

Market Strength

• VTR has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 95.3 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

Our High Growth Momentum Breakout screen will find you more ideas suited for high growth momentum breakouts.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.