Strong And Under The Radar: CareTrust REIT (CTRE)

Trade-Ideas LLC identified CareTrust REIT (CTRE) as a strong and under the radar candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

CareTrust REIT

(

CTRE

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified CareTrust REIT as such a stock due to the following factors:

  • CTRE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.9 million.
  • CTRE has traded 1.3432999999999999385380533567513339221477508544921875 options contracts today.
  • CTRE is making at least a new 3-day high.
  • CTRE has a PE ratio of 45.
  • CTRE is mentioned 0.58 times per day on StockTwits.
  • CTRE has not yet been mentioned on StockTwits today.
  • CTRE is currently in the upper 20% of its 1-year range.
  • CTRE is in the upper 35% of its 20-day range.
  • CTRE is in the upper 45% of its 5-day range.
  • CTRE is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on CTRE:

CareTrust REIT, Inc. (NasdaqGS:CTRE) operates independently of The Ensign Group, Inc. as of June 02, 2014. The stock currently has a dividend yield of 4.9%. CTRE has a PE ratio of 45. Currently there are 4 analysts that rate CareTrust REIT a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for CareTrust REIT has been 504,500 shares per day over the past 30 days. CareTrust REIT has a market cap of $810.2 million and is part of the financial sector and real estate industry. Shares are up 27.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CareTrust REIT as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 11.9%. Since the same quarter one year prior, revenues rose by 39.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for CARETRUST REIT INC is rather high; currently it is at 58.91%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CTRE's net profit margin of 23.28% significantly trails the industry average.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, CARETRUST REIT INC's return on equity is below that of both the industry average and the S&P 500.

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