Is Welltower Stock Outperforming the S&P 500?
Valued at $94.6 billion by market cap, Toledo, Ohio-based Welltower Inc. (WELL) operates as a real estate investment trust. The company invests with leading senior housing operators and post-acute providers to fund the real estate infrastructure required to scale innovative care delivery models and aid in improving people's wellness and healthcare experience.
Companies valued at $10 billion or more are generally classified as “large-cap stocks,” WELL fits this criterion perfectly. As a key player in the real estate sector, Welltower owns interests in properties concentrated in major, high-growth markets in the U.S., Canada, and the U.K.
Welltower stock recently touched its all-time high of $158.55 on Mar. 4 and is currently trading 7% below that peak. Over the past three months, WELL stock has surged 12.2%, significantly outpacing the S&P 500 Index’s ($SPX) 5.3% decline during the same period.
Over the longer term, Welltower’s performance looks even more impressive. WELL stock soared 18.3% over the past six months and 60.2% over the past 52 weeks, significantly outperforming SPX’s 6.7% gains over the past six months and 11.9% returns over the past year.
To confirm the bullish trend, Welltower stock has traded consistently above its 200-day moving average over the past year and above its 50-day moving average since mid-January.
Welltower’s stock prices gained 2.2% in the trading session after the release of its impressive Q4 results on Feb. 11. The company announced a 28.6% year-over-year growth in its total revenues to approximately $2.3 billion. Meanwhile, driven by a solid 12.8% year-over-year growth in comparable net operating income, Welltower’s net income to shareholders surged nearly 43% compared to the year-ago quarter to approximately $120 million. Furthermore, Welltower's normalized funds from operations increased 17.7% year-over-year to $1.13 per share, exceeding the Street's expectations, which boosted investor confidence.
Moreover, the company also outperformed its top rival Ventas, Inc.'s (VTR) surge of 8% over the past six months and 55.9% over the past 52 weeks.
Observing Welltower's solid performance, analysts remain extremely bullish on the company's prospects. WELL stock has a consensus “Strong Buy” rating among the 19 analysts covering it. WELL’s mean price target of $72.89 implies a 7.4% potential upside from the current market prices.
On the date of publication, Aditya Sarawgi 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.