Is WELLTOWER INC (NYSE:WELL) following the Minervini trend for explosive growth?

In this article we will dive into WELLTOWER INC (NYSE:WELL) as a possible candidate for growth investing. Investors should always do their own research, but we noticed WELLTOWER INC showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

WELL passes the Minervini Trend Template check!

WELL checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Unpacking WELL's High Growth Momentum Rating

ChartMill employs its own High Growth Momentum Rating (HGM) system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth and profitability factors, such as EPS and revenue growth, as well as accelleration, surprises and revision history. WELL has earned a 6:

Earnings Momentum

• The earnings per share (EPS) of WELL have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 445.0% increase. This reflects the company's ability to improve its profitability over time.
• WELL shows accelerating EPS growth: when comparing the current Q2Q growth of 445.0% to the previous quarter Q2Q growth of 26.67%, we see the growth rate improving.
• WELL has experienced 214.0% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• Over the past 3 years, WELL has demonstrated 25.99% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• WELL has achieved 30.29% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
• WELL shows accelerating Sales growth: when comparing the current Q2Q growth of 30.29% to the previous quarter Q2Q growth of 28.64%, we see the growth rate improving.
• Sales acceleration happened 3 quarters in a row.
• WELL has achieved significant 1-year revenue growth of 20.38%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.

Profitability & Financial Strength

• WELL has experienced growth in its profit margin over the past year, reflecting improved operational performance.
• With positive growth in its free cash flow (FCF) over the past year, WELL showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
• With a Debt/Equity ratio of 0.49, WELL appears to have a manageable debt load relative to its assets.

Market Strength

• The Relative Strength (RS) of WELL has been consistently solid, with a current 94.6 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

How does the Setup look for WELL

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 WELL is 8:

Besides having an excellent technical rating, WELL also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 148.49, a Stop Loss order could be placed below this zone.

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

Final Thoughts

Our High Growth Momentum + Trend Template screen will find you more ideas which meet the Minervini criteria.

Keep in mind

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.