Growth stocks are companies expected to expand earnings and revenue at a faster pace than the broader market. Investors target these stocks for capital appreciation, as they often reinvest profits into further expansion rather than paying dividends. Identifying strong growth stocks requires a mix of fundamental strength and favorable technical patterns, which can signal potential breakouts.
CARETRUST REIT INC (NYSE:CTRE) stands out as a candidate that combines solid growth fundamentals with a promising technical setup.
Why CARETRUST REIT INC (NYSE:CTRE) Fits the Growth Stock Criteria
Strong Fundamental Growth
The company earns a Growth Rating of 9/10, reflecting robust past and projected expansion. Recent performance includes:
- 100% EPS growth in the past year.
- 36% revenue growth over the same period.
- Expected 27% annual EPS growth in the coming years.
These figures suggest CARETRUST REIT INC (NYSE:CTRE) is outpacing many peers in the Diversified REITs industry.
Solid Profitability and Financial Health
- Profitability Rating: 8/10 – Strong margins, including a 98% gross margin and 64.8% operating margin, well above industry averages.
- Health Rating: 5/10 – While debt levels are manageable, some concerns exist regarding share dilution and ROIC vs. WACC.
Technical Breakout Potential
The stock holds a Technical Rating of 8/10, with a Setup Rating of 7/10, indicating a favorable consolidation pattern. Key observations:
- Both short and long-term trends are positive.
- Trading near the high of its recent range ($25.82 - $29.49).
- Minimal resistance above current levels, with support at $27.51 - $28.54.
For a deeper dive into the fundamentals, see the full Fundamental Analysis report. For technical insights, review the Technical Analysis report.
Conclusion
CARETRUST REIT INC (NYSE:CTRE) presents a compelling case as a growth stock with a technical breakout setup. Its strong earnings growth, high profitability, and favorable chart pattern make it a stock worth monitoring.
For more growth stock ideas, check out this screener for strong growth stocks with good technical setups.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
