Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Health Care REIT as such a stock due to the following factors:
- HCN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $100.2 million.
- HCN is down 2.5% today from today's close.
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More details on HCN:
Health Care REIT, Inc. is an independent equity real estate investment trust. The firm engages in acquiring, planning, developing, managing, repositioning and monetizing of real estate assets. It primarily invests in the real estate markets of the United States. The stock currently has a dividend yield of 4.9%. HCN has a PE ratio of 169.8. Currently there are 6 analysts that rate Health Care REIT a buy, 2 analysts rate it a sell, and 7 rate it a hold.
The average volume for Health Care REIT has been 1.6 million shares per day over the past 30 days. Health Care REIT has a market cap of $18.8 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.45 and a short float of 4.1% with 6.46 days to cover. Shares are up 20.4% year-to-date as of the close of trading on Friday.
rates Health Care REIT as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, impressive record of earnings per share growth and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.1%. Since the same quarter one year prior, revenues rose by 26.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has increased to $258.66 million or 29.45% when compared to the same quarter last year. In addition, HEALTH CARE REIT INC has also modestly surpassed the industry average cash flow growth rate of 27.25%.
- HEALTH CARE REIT INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HEALTH CARE REIT INC reported lower earnings of $0.09 versus $0.46 in the prior year. This year, the market expects an improvement in earnings ($0.80 versus $0.09).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, HEALTH CARE REIT INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The change in net income from the same quarter one year ago has exceeded that of the Real Estate Investment Trusts (REITs) industry average, but is less than that of the S&P 500. The net income has decreased by 7.4% when compared to the same quarter one year ago, dropping from $71.66 million to $66.38 million.
- You can view the full Health Care REIT Ratings Report.