Why NYSE:CTRE Is a Promising High-Growth Stock in the Midst of Consolidation.

In this article, we'll take a closer look at CARETRUST REIT INC (NYSE:CTRE) as a potential candidate for growth investing. While it's important for investors to conduct their own research, CARETRUST REIT INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Analyzing Growth Metrics

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:CTRE scores a 8 out of 10:

• CTRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.61%, which is quite impressive.
• The Revenue has grown by 28.22% in the past year. This is a very strong growth!
• The Earnings Per Share is expected to grow by 45.40% on average over the next years. This is a very strong growth
• CTRE is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.98% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

A Closer Look at Health for NYSE:CTRE

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:CTRE, the assigned 6 for health provides valuable insights:

• An Altman-Z score of 6.17 indicates that CTRE is not in any danger for bankruptcy at the moment.
• CTRE has a Altman-Z score of 6.17. This is amongst the best in the industry. CTRE outperforms 99.21% of its industry peers.
• A Debt/Equity ratio of 0.16 indicates that CTRE is not too dependend on debt financing.
• The Debt to Equity ratio of CTRE (0.16) is better than 97.62% of its industry peers.
• CTRE has a Current Ratio of 4.14. This indicates that CTRE is financially healthy and has no problem in meeting its short term obligations.
• CTRE has a better Current ratio (4.14) than 91.27% of its industry peers.
• A Quick Ratio of 4.14 indicates that CTRE has no problem at all paying its short term obligations.
• CTRE's Quick ratio of 4.14 is amongst the best of the industry. CTRE outperforms 91.27% of its industry peers.

Exploring NYSE:CTRE's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:CTRE, the assigned 7 is a significant indicator of profitability:

• The Return On Assets of CTRE (3.38%) is better than 82.54% of its industry peers.
• CTRE's Return On Equity of 4.08% is fine compared to the rest of the industry. CTRE outperforms 65.87% of its industry peers.
• With an excellent Return On Invested Capital value of 4.92%, CTRE belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for CTRE is above the industry average of 3.11%.
• The Profit Margin of CTRE (36.73%) is better than 88.10% of its industry peers.
• Looking at the Operating Margin, with a value of 65.34%, CTRE belongs to the top of the industry, outperforming 99.21% of the companies in the same industry.
• CTRE's Operating Margin has improved in the last couple of years.
• The Gross Margin of CTRE (98.16%) is better than 98.41% of its industry peers.

How do we evaluate the setup for NYSE:CTRE?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:CTRE currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

Although the technical rating is bad, CTRE does present a nice setup opportunity. Prices have been consolidating lately. There is a support zone below the current price at 26.25, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Our latest full fundamental report of CTRE contains the most current fundamental analsysis.

Check the latest full technical report of CTRE for a complete technical analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.