CareTrust REIT Inc (NYSE:CTRE) – A High Growth Momentum Stock with Strong Technical Setup

High growth momentum investing focuses on stocks demonstrating accelerating earnings, revenue growth, and positive analyst revisions. These stocks often exhibit strong price trends, making them attractive to investors seeking both fundamental and technical strength. CareTrust REIT Inc (NYSE:CTRE) fits this profile, with solid growth metrics and a favorable technical setup.

Why CareTrust REIT Inc (NYSE:CTRE) Stands Out

High Growth Momentum Rating

CareTrust REIT Inc (NYSE:CTRE) scores a 6 on the High Growth Momentum Rating, reflecting strong earnings and revenue trends. Key highlights include:

• EPS Growth (TTM): 70.83%
• Revenue Growth (TTM): 36.05%
• Next Quarter EPS Growth Estimate: 70.62%
• Analyst Revisions: EPS and revenue estimates for next year have been revised upward by 10.01% over the past three months.

The company has shown consistent earnings acceleration, with recent quarterly EPS growth at 45.45%, following even stronger prior quarters (162.5% and 800% in previous periods). Profit margins have also expanded, rising from 24.49% two years ago to 42.07% in the latest fiscal year.

Technical Strength

The technical report highlights CareTrust REIT Inc (NYSE:CTRE) as a strong performer with:

• Technical Rating: 8 – The stock is in a clear uptrend, outperforming 91% of its peers in the Diversified REITs industry.
• Setup Rating: 7 – Prices have consolidated recently, reducing volatility and setting up a potential breakout.
• Support Levels: Strong support exists between $27.51 and $28.54, providing a clear stop-loss zone.
• Resistance: A breakout above $29.13 could signal further upside.

The stock has been trading in a range between $25.82 and $29.49 over the past month, currently near the upper end, suggesting bullish momentum.

Trading Considerations

For investors considering a position, the technical setup suggests:

• Entry Point: Above $29.14 (breakout level).
• Stop Loss: Below $27.62 (support zone).
• Risk/Reward: A 5.22% downside risk with potential upside if the breakout holds.

Conclusion

CareTrust REIT Inc (NYSE:CTRE) presents a compelling case for high growth momentum investors, backed by strong earnings acceleration, improving margins, and a favorable technical setup. While the stock shows promise, investors should conduct their own research and consider risk management strategies.

For more high-growth momentum stocks with strong technical setups, explore our screener results.