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 "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Ventas as such a stock due to the following factors:
- VTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $120.4 million.
- VTR has traded 1.4 million shares today.
- VTR traded in a range 254.3% of the normal price range with a price range of $2.98.
- VTR traded above its daily resistance level (quality: 6 days, meaning that the stock is crossing a resistance level set by the last 6 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock s movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on VTR:
Ventas, Inc. is a publicly owned real estate investment trust. The firm engages in investment, management, financing, and leasing of properties in the healthcare industry. It invests in the real estate markets of the United States and Canada. The stock currently has a dividend yield of 4.6%. VTR has a PE ratio of 37.0. Currently there are 3 analysts that rate Ventas a buy, 3 analysts rate it a sell, and 6 rate it a hold.
The average volume for Ventas has been 1.8 million shares per day over the past 30 days. Ventas has a market cap of $17.3 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.53 and a short float of 1.9% with 2.51 days to cover. Shares are down 6.8% year to date as of the close of trading on Tuesday.
rates Ventas as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, reasonable valuation levels, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- VTR's revenue growth has slightly outpaced the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 11.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 54.8% when compared to the same quarter one year prior, rising from $74.03 million to $114.58 million.
- Net operating cash flow has increased to $277.38 million or 28.50% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 6.26%.
- VENTAS 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, VENTAS INC reported lower earnings of $1.04 versus $1.41 in the prior year. This year, the market expects an improvement in earnings ($1.54 versus $1.04).
- You can view the full Ventas Ratings Report.