Trade-Ideas LLC identified Welltower ( HCN) 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 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 $128.2 million.
- HCN has traded 599,266 shares today.
- HCN traded in a range 204.6% of the normal price range with a price range of $2.60.
- HCN traded above its daily resistance level (quality: 353 days, meaning that the stock is crossing a resistance level set by the last 353 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in HCN with the Ticky from Trade-Ideas. See the FREE profile for HCN NOW at Trade-Ideas 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 5%. HCN has a PE ratio of 3. Currently there are 5 analysts that rate Welltower a buy, 1 analyst rates it a sell, and 11 rate it a hold. The average volume for Welltower has been 2.5 million shares per day over the past 30 days. Welltower has a market cap of $24.7 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.18 and a short float of 6.7% with 9.07 days to cover. Shares are up 3.3% year-to-date as of the close of trading on Monday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. 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, expanding profit margins 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:
- The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 19.3%. 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 increased to $337.14 million or 18.50% when compared to the same quarter last year. In addition, WELLTOWER INC has also vastly surpassed the industry average cash flow growth rate of -64.29%.
- 35.53% is the gross profit margin for WELLTOWER INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, HCN's net profit margin of 14.54% significantly trails the industry average.
- 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.
- You can view the full Welltower Ratings Report.
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