WELLTOWER INC (NYSE:WELL) Shows Strong Growth Momentum and Technical Breakout Potential

Investors looking for high-growth momentum stocks with solid technical setups often focus on companies showing faster earnings, wider profit margins, and positive analyst updates, all while maintaining strong price trends and consolidation patterns. The ChartMill High Growth Momentum (HGM) Rating blends these growth measures with technical strength, evaluated by the Technical Rating and Setup Quality Score. WELLTOWER INC (NYSE:WELL) stands out as a potential fit for this strategy, displaying both fundamental momentum and a promising chart setup.

Fundamental Growth Momentum

WELLTOWER’s HGM Rating of 6 highlights solid growth traits, backed by these metrics:

• Earnings Growth:

  • TTM EPS Growth: +71.8% YoY, showing strong profit growth.
  • Quarterly EPS Acceleration: The latest quarter saw a 7.1% YoY increase, while the prior quarter jumped 81.8%, and the one before that rose 204.2%, pointing to periods of high growth.
  • Full-Year EPS Growth: Annual earnings grew 143.8%, a sharp recovery from earlier drops.

• Revenue Growth:

  • TTM Revenue Growth: +30.7% YoY, reflecting business growth.
  • Quarterly Sales Growth: Recent quarters posted YoY gains of 39.6%, 30.3%, and 28.6%, indicating steady demand.

• Profit Margins:

  • Margin Improvement: The latest quarter’s profit margin of 11.8% rose from 10.6% in the previous quarter, though still below the 21.9% peak from three quarters ago. Yearly margins widened from 5.1% to 11.9%, showing better cost control.

• Free Cash Flow Growth:

  • FCF per Share Growth: +86.4% YoY, highlighting financial strength and reinvestment opportunities.

• Analyst Revisions & Surprises:

  • Revenue Estimate Beats: The company exceeded revenue estimates in all of the last four quarters by an average of 2.5%.
  • EPS Surprises: Beat estimates in one of the last four quarters, with an average surprise of 7.7%.

These metrics match the HGM Rating’s emphasis on earnings momentum, faster growth, and positive updates—key parts of high-growth investing approaches like CANSLIM.

Technical Strength & Setup Quality

WELLTOWER’s technical profile adds to its appeal:

• Technical Rating (10/10):

  • The stock is in a long-term uptrend, beating 84% of the market and 94% of its REIT peers.
  • Trading near the top of its 52-week range ($115.18–$171.09), it holds steady moving average support (20-day: $164.69, 50-day: $157.90, 200-day: $145.43).

• Setup Quality (8/10):

  • Recent price action shows consolidation between $158.24 and $171.09, with lower volatility—a sign of potential breakout setups.
  • Support levels at $157.96 (trendlines and moving averages) and $151.44 (horizontal support) offer clear stop-loss points.
  • Resistance sits near $164.69–$169.70, and a break above could signal more upside.

The full technical report includes additional support/resistance levels and trade setup ideas.

Why This Combination Matters

High-growth momentum strategies work best when strong fundamentals align with technically sound entry points. WELLTOWER’s faster earnings, margin gains, and consistent revenue beats make it a fundamental leader, while its tight consolidation and high Technical Rating suggest a low-risk breakout chance. Investors following methods like Minervini’s trend-following approach or CANSLIM’s growth-momentum focus would find this alignment noteworthy.

For more high-growth momentum stocks with breakout potential, check the High Growth Momentum Breakout Setups Screen.

Disclaimer: This analysis is not investment advice. Always do your own research and consider risk management before trading.