CareTrust REIT (CTRE)’s EPS growth Analysis:
Growth in earnings per share is everything. The expected future growth in earnings per share (EPS) is an incredibly important factor .in identifying an under-valued stock. The impact of earnings growth is exponential. Over the long run, the price of a stock will generally go up in lock step with its earnings (assuming the P/E ratio is constant). Therefore stocks with higher earnings growth should offer the highest capital gains. And doubling the growth more than doubles the capital gain, due to the compounding effect.
Given the importance of identifying companies that will grow earnings per share at high rate, we then need to consider how to identify which companies will achieve high growth rates. One obvious way to identify high earnings per share growth companies is to find companies that have demonstrated such growth over the past 5 to 10 years. We can’t assume the past will always reflect the future, but logically stocks that have grown earnings per share strongly in the past are a good bet to continue to do so.
CareTrust REIT (CTRE) estimated to achieve earnings per share (EPS) growth of -32.30% for this year while EPS growth expected to touch 5.50% for next year. The company reported EPS (ttm) of 0.57. Take a view on its long-term annual earnings per share (EPS) growth rate which is suggested by Analyst to reach at 30.30% for next 5 years and looking its past five year record, annual EPS growth rate was 135.00%.
CareTrust REIT (CTRE) ticked a yearly performance of 47.59% while year-to-date (YTD) performance stood at 20.96%. The stock price moved with change of 0.54% to its 50 Day low point and changed 26.09% comparing to its 50 Day high point. CTRE stock is currently showing up return of 1.59% throughout last week and witnessed increasing return of 18.09% in one month period. The stock price jumped 23.78% in three months and increased 26.02% for the last six months trading period.
The recent session unveiled a 75.41% upward lead over its 52-week stock price low and showed up move of 0.54% over its 52-week high stock price. The stock price volatility remained at 2.24% in recent month and reaches at 2.26% for the week. The Average True Range (ATR) is also a measure of volatility is currently sitting at 0.47.
Analysis of Simple Moving Average:
The Simple Moving Average is arguably the most popular technical analysis tool used by traders. The Simple Moving Average (SMA) is often used to identify trend direction, but can be used to generate potential buy and sell signals.
When price is in an uptrend and subsequently, the moving average is in an uptrend, and the moving average has been tested by price and price has bounced off the moving average a few times (i.e. the moving average is serving as a support line), then a trader might buy on the next pullbacks back to the Simple Moving Average.
At times when price is in a downtrend and the moving average is in a downtrend as well, and price tests the SMA above and is rejected a few consecutive times (i.e. the moving average is serving as a resistance line), then a trader might sell on the next rally up to the Simple Moving Average.
CareTrust REIT (CTRE) stock price performed at a change of 6.89% from 20 day SMA and stands at a distance of 11.87% away from 50 day SMA. At present time the stock is moving 25.65% away to its 200-day moving average.
Short Ratio of stock is 2.27. CareTrust REIT is a part of Financial sector and belongs to REIT – Healthcare Facilities industry. CareTrust REIT (CTRE) finalized the Thursday at price of $22.33 after traded 854857 shares. The average volume was noted at 970.41K shares while its relative volume was seen at 0.88. Volume is an important technical analysis tool to learn and understand how to apply to price movements. Volume increases every time a buyer and seller transact their stock or futures contract. If a buyer buys one share of stock from a seller, then that one share is added to the total volume of that particular stock. Volume has two major premises:
When prices rise or fall, an increase in volume acts as confirmation that the rise or fall in price is real and that the price movement had strength. When prices rise or fall and there is a decrease in volume, then this might be interpreted as being a weak price move, because the price move had very little strength and interest from traders.
CareTrust REIT (CTRE) reported addition change of 2.20% in last trading session. It is a positive indicator for investor portfolio value — when the price of a stock Investor owns goes up in value. On the other side it is not a negative indicator for Investor portfolio value — when the price of a stock Investor owns moves down in value.
In the liquidity ratio analysis; current ratio was 0.9 while Total Debt/Equity ratio was 0.67. The return on assets ratio of the Company was 3.60% . Price to sales ratio was 11.99 while Price to sales book ratio stands at 2.53. 91.10% shares of the company were owned by Institutional investors and Insider investors hold stake of 0.10%.
Keep Eyes On RSI Indicator:
The stock’s RSI amounts to 70.04. Wilder believed that when prices rose very rapidly and therefore momentum was high enough, that the underlying financial instrument/commodity would have to eventually be considered overbought and a selling opportunity was possibly at hand. Likewise, when prices dropped rapidly and therefore momentum was low enough, the financial instrument would at some point be considered oversold presenting a possible buying opportunity.
There are set number ranges within RSI that Wilder consider useful and noteworthy in this regard. According to Wilder, any number above 70 should be considered overbought and any number below 30 should be considered oversold. An RSI between 30 and 70 was to be considered neutral and an RSI around 50 signified no trend. – Some traders believe that Wilder’s overbought/oversold ranges are too wide and choose to alter those ranges. For example, someone might consider any number above 80 as overbought and anything below 20 as undersold. This is entirely at the trader’s discretion. The Beta factor, which is used riskiness of the security was 0.92.
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