Why VENTAS INC (NYSE:VTR) is Poised for High Growth.

Our stock screener has spotted VENTAS INC (NYSE:VTR) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:VTR.

Deciphering the Technical Picture of VTR

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, VTR scores 7 out of 10 in our technical rating. In the last year, VTR was one of the better performers, but we do observe some doubts in the very recent evolution.

• When comparing the yearly performance of all stocks, we notice that VTR is one of the better performing stocks in the market, outperforming 92% of all stocks. On top of that, VTR also shows a nice and consistent pattern of rising prices.
• VTR is one of the better performing stocks in the Diversified REITs industry, it outperforms 93% of 129 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.
• The long term trend is positive and the short term trend is negative. It is probably better to wait until this picture becomes clearer.

Our latest full technical report of VTR contains the most current technical analsysis.

Why is VTR a setup?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. VTR currently has a 8 as setup rating:

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 support zone below the current price at 65.59, 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 7 out of 10:

Explosive Earnings Growth

• The recent financial report of VTR demonstrates a 3.0K% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• Accelerating EPS growth for VTR: the current Q2Q growth of 3.0K% exceeds the previous quarter Q2Q growth of 157.0%.
• Sales acceleration happened 2 quarters in a row.
• VTR has achieved 512.0% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• VTR shows accelerating Sales growth: when comparing the current Q2Q growth of 13.18% to the previous quarter Q2Q growth of 10.53%, we see the growth rate improving.
• Sales acceleration happened 2 quarters in a row.
• Analysts' average next Quarter EPS Estimate for VTR has witnessed a 94.29% change in the last 3 months, underscoring the evolving market expectations towards the company's EPS prospects.
• 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.

Profitability & Financial Strength

• The operating margin of VTR has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• VTR has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• VTR exhibits a favorable Debt-to-Equity ratio at 1.06. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.

Strong Market Performance

• The Relative Strength (RS) of VTR has consistently been strong, with a current 92.06 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.