Why CARETRUST REIT INC (NYSE:CTRE) is Poised for High Growth.

CARETRUST REIT INC (NYSE:CTRE) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NYSE:CTRE.

What is the technical picture of CTRE telling us.

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, CTRE scores 8 out of 10 in our technical rating. In the last year, CTRE was one of the better performers in the market. There are positive signs in the very recent evolution, but the medium term picture is slightly mixed.

• Both the short term and long term trends are positive. This is a very positive sign.
• CTRE is part of the Diversified REITs industry. There are 130 other stocks in this industry. CTRE outperforms 82% of them.
• CTRE is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• When comparing the yearly performance of all stocks, we notice that CTRE is one of the better performing stocks in the market, outperforming 85% of all stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• CTRE is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.

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

How does the Setup look for CTRE

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For CTRE this score is currently 7:

CTRE has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 28.78. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for CTRE in the last couple of days, which is a good sign.

Assessing Growth for CTRE

Every stock receives a High Growth Momentum Rating (HGM) from ChartMill, ranging from 0 to 10. This rating assesses various growth and profitability aspects, including historical and projected EPS and revenue growth. CTRE boasts a 6 out of 10:

Earnings Momentum

• The EPS of CTRE has exhibited growth from one quarter to another (Q2Q), with a 45.45% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• CTRE has experienced 70.83% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• CTRE has demonstrated strong q2q revenue growth of 16.32%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
• CTRE has achieved significant 1-year revenue growth of 36.05%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.
• CTRE has seen a 9.89% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.

Financial Strength & Profitability

• The operating margin of CTRE has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• With a favorable trend in its profit margin over the past year, CTRE demonstrates its ability to enhance profitability through efficient operations.
• A Debt/Equity ratio of 0.14 indicates that CTRE is leveraging debt effectively without excessive risk.

Market Strength

• The Relative Strength (RS) of CTRE has consistently been strong, with a current 85.47 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.

Our High Growth Momentum Breakout screen will find you more ideas suited for high growth momentum breakouts.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.