Trade-Ideas LLC identified

Welltower

(

HCN

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Welltower 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 $118.1 million.
  • HCN has traded 1443.30999999999994543031789362430572509765625 options contracts today.
  • HCN is making at least a new 3-day high.
  • HCN has a PE ratio of 35.
  • HCN is mentioned 1.58 times per day on StockTwits.
  • HCN has not yet been mentioned on StockTwits today.
  • HCN is currently in the upper 20% of its 1-year range.
  • HCN is in the upper 35% of its 20-day range.
  • HCN is in the upper 45% of its 5-day range.
  • HCN is currently trading above yesterday's high.

TheStreet Recommends

'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 HCN:

Welltower 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 4.4%. HCN has a PE ratio of 35. Currently there are 4 analysts that rate Welltower a buy, 1 analyst rates it a sell, and 12 rate it a hold.

The average volume for Welltower has been 2.4 million shares per day over the past 30 days. Welltower has a market cap of $27.7 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.16 and a short float of 6.9% with 10.20 days to cover. Shares are up 14.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Welltower as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, good cash flow from operations, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • HCN's revenue growth has slightly outpaced the industry average of 11.9%. Since the same quarter one year prior, revenues rose by 18.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 65.22% to $373.71 million when compared to the same quarter last year. In addition, WELLTOWER INC has also vastly surpassed the industry average cash flow growth rate of 11.78%.
  • 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, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • 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. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, WELLTOWER INC's return on equity is below that of both the industry average and the S&P 500.

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