Ventas - A Place For Mom

Summary

  • Ventas Inc. (VTR) is a leading senior living facility REIT with strong technical buy signals and a 35.09% gain since 5/2.
  • The company boasts a $25.14 billion market cap, 2.90% dividend yield, and is expected to grow revenue by 7.30% this year.
  • Analysts provide strong buy ratings with price targets between $55 and $70, supported by positive demographic trends and high-quality senior housing.
  • Despite its volatility, VTR is rated highly by Barchart, CFRA, and MorningStar, making it a compelling investment for income-focused investors.

The Chart of the Day belongs to the senior living facility company Ventas (VTR). I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 5/2 the stock gained 35.09%.

(Click on image to enlarge)

VTR Price vs Daily Moving Averages


Ventas Inc. (NYSE: VTR) is a leading S&P 500 real estate investment trust focused on delivering strong, sustainable shareholder returns by enabling exceptional environments that benefit a large and growing aging population. The Company's growth is fueled by its senior housing communities, which provide valuable services to residents and enable them to thrive in supported environments. Ventas leverages its unmatched operational expertise, data-driven insights from its Ventas Operational InsightsTM platform, extensive relationships and strong financial position to achieve its goal of delivering outsized performance across approximately 1,400 properties. The Ventas portfolio is composed of senior housing communities, outpatient medical buildings, research centers and healthcare facilities in North America and the United Kingdom. The Company benefits from a seasoned team of talented professionals who share a commitment to excellence, integrity and a common purpose of helping people live longer, healthier, happier lives. 

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

  • 100% technical buy signals
  • 56.73+ Weighted Alpha
  • 1.33 - 60 month Beta
  • 44.94% gain in the last year
  • Trend Seeker buy signal
  • Above its 20, 50 and 100 day moving averages
  • 12 new highs and up 10.71% in the last month
  • Relative Strength Index 82.04%
  • Technical support level at $61.80
  • Recently traded at $62.44 with 50 day moving average of $55.48

Fundamental Factors:

  • Market Cap $25.14 billion
  • P/E 19.78
  • Dividend yield 2.90%
  • Revenue expected to grow 7.30% this year and another 6.30% next year
  • Earnings estimated to decrease 100.00% this year

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

  • Wall Street analyst gave 9 strong buy, 5 buy and 5 hold opinions on the stock
  • Analysts' price targets are between $55 and $70 with a consensus of $62
  • Value Line has price targets between $39 and $70 with a mid-point of $62 and comments:" The issue’s dividend yield may appeal to some income investors. "
  • CFRAs MarketScope rates the stock a 4 star buy with a price target of $65 and comments: " VTR sees significant value creation opportunities with high quality senior housing, which we believe is in the early innings of what could be a decade of strong growth due to positive supply/demand trends and secular demographic tailwinds."
  • MorningStar rates the stock an above average 4 star rating with Fair Value at $69 or 9% under valued and comments:" The top healthcare real estate stands to disproportionately benefit from the Affordable Care Act.
  • 47,010 investors monitor the stock on Seeking Alpha

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.


On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.


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