WELLTOWER INC (NYSE:WELL) – A High Growth Momentum Stock with Strong Technical Setup

High growth momentum investing focuses on identifying stocks with accelerating earnings, revenue growth, and positive analyst revisions. These stocks often exhibit strong price momentum, making them attractive for investors seeking rapid gains. WELLTOWER INC (NYSE:WELL) stands out as a candidate that fits this strategy while also presenting a solid technical breakout setup.

Why WELLTOWER INC Fits High Growth Momentum Criteria

WELLTOWER INC has demonstrated strong earnings and revenue growth, key factors for high growth momentum investors. Here’s why:

• Explosive EPS Growth: The company reported a 445.45% year-over-year EPS growth in the most recent quarter, following a 26.67% increase in the prior quarter. Over the past year, EPS growth stands at 213.58%.
• Revenue Momentum: Sales grew 30.29% in the latest quarter, with estimates suggesting 33.76% growth in the next quarter. Annual revenue growth is 23.32%.
• Positive Earnings Surprises: WELLTOWER INC has beaten EPS estimates in 2 of the last 4 quarters, with an average surprise of 10.67%. Revenue surprises were even stronger, with 3 beats and an average 2.18% upside.
• Free Cash Flow Growth: Free cash flow per share increased 40.86% over the past year, indicating strong financial health.
• Analyst Optimism: Both EPS and revenue estimates for the next year have been revised upward by 0.10% over the last three months.

These metrics contribute to WELLTOWER INC’s High Growth Momentum Rating of 6, signaling solid earnings and sales momentum.

Technical Strength and Setup

The stock also scores well on technical factors, with a Technical Rating of 9 and a Setup Rating of 7. Key takeaways from the technical report include:

• Strong Uptrend: Both short-term and long-term trends are positive, with the stock outperforming 95% of the market over the past year.
• Support and Resistance: Key support levels are found between $145.63-$148.56, while resistance sits at $153.52. A breakout above resistance could signal further upside.
• Consolidation Pattern: The stock has been trading in a range between $130.29 and $157.40 over the past month, currently near the upper end. A breakout could present a favorable entry point.

Potential Trade Setup

For traders considering a breakout strategy:

• Entry: A buy stop above resistance at $153.53.
• Exit: A stop-loss below support at $145.62, representing a 5.15% risk.

While the technical setup is strong, volatility suggests waiting for a confirmed breakout before entering.

Final Thoughts

WELLTOWER INC combines strong earnings momentum with a favorable technical setup, making it an interesting candidate for high growth investors. However, as with any investment, due diligence is essential.

For more high-growth momentum stocks with solid technical setups, check out this screener.