Latest news with #Welltower
Yahoo
15 hours ago
- Business
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Welltower Stock Gains 24.1% in Six Months: Will it Continue to Rise?
Shares of Welltower WELL have gained 24.1% in the past six months, outperforming the industry's upside of 5.7%. Welltower boasts a well-diversified portfolio of healthcare real estate assets in the key markets of the United States, Canada and the U.K. Given an aging population and an expected rise in senior citizens' healthcare expenditure, the company's senior housing operating (SHO) segment is well-poised to benefit from this positive trend. The outpatient medical (OM) portfolio is expected to benefit from favorable outpatient visit trends in the near term. Analysts seem positive on this healthcare REIT, currently carrying a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its 2025 funds from operations (FFO) per share has been revised three cents northward to $5.02 over the past month. Image Source: Zacks Investment Research Let us decipher the possible factors behind the surge in the stock price. The senior citizens' population is expected to rise in the years ahead. As a result, the national healthcare expenditure by senior citizens, who constitute a major customer base of healthcare services and incur higher healthcare expenditures than the average population, is likely to increase in the upcoming period. Muted new supply has also been a tailwind for this industry. Capitalizing on these positive aspects, WELL's SHO portfolio is well-prepared for compelling multiyear revenue growth. For 2025, management anticipates the same-store SHO net operating income to grow within 16.5-21.5%. Historically, there has been a favorable outpatient visit trend compared with inpatient admissions. Banking on this, the company is optimizing its OM portfolio, growing relationships with health system partners and deploying capital in strategic acquisitions. Given the favorable secular trends and growing need for value-based care, the company's efforts to strengthen its OM footprint will boost long-term growth. Welltower has been actively banking on its growth opportunities through acquisitions. In March 2025, Welltower announced that it is under contract to acquire the Amica Senior Lifestyles portfolio from Ontario Teachers' Pension Plan for C$4.6 billion. The deal, subject to customary regulatory approvals, is expected to close in late 2025 or early 2026. The company has also been disposing of assets simultaneously. In the first quarter of 2025, Welltower completed pro rata property dispositions of $381 million and loan repayments of $123 million. Welltower has a healthy balance sheet position and ample liquidity to meet near-term obligations and fund its development pipeline. As of March 31, 2025, it had $8.6 billion of available liquidity, including $3.6 billion of cash & restricted cash and full capacity under its $5 billion line of credit. As of March 31, 2025, the net debt to adjusted EBITDA was 3.33X, improving from 4.03X year over year. Moreover, Welltower's debt maturities are well-laddered, with a weighted average maturity of 5.8 years, thereby enhancing its financial flexibility. With the above-mentioned factors, we believe the rising trend in the stock is expected to continue in the near term. A competitive landscape in the senior housing market and tenant concentration in its triple-net portfolio are likely to weigh on Welltower. Some better-ranked stocks from the broader REIT sector are VICI Properties VICI and Medical Properties Trust MPW, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for VICI's 2025 FFO per share has moved one cent northward to $2.34 over the past two months. The Zacks Consensus Estimate for MPW's 2025 FFO per share has moved one cent northward to 57 cents over the past month. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Medical Properties Trust, Inc. (MPW) : Free Stock Analysis Report Welltower Inc. (WELL) : Free Stock Analysis Report VICI Properties Inc. (VICI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
15-05-2025
- Business
- Yahoo
Here's Why Welltower (WELL) Surged in Q1
Baron Funds, an investment management company, released its 'Baron Real Estate Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1 2025, stocks were sold due to economic growth slowdown, inflation, and policymaking issues, including Baron Real Estate Fund®, without considering value. The fund declined 6.69% (Institutional Shares) in the quarter compared to a 3.11% decline for the MSCI USA IMI Extended Real Estate Index (the MSCI Real Estate Index) and a 0.76% gain for the MSCI US REIT Index (the REIT Index). In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Baron Real Estate Fund highlighted stocks such as Welltower Inc. (NYSE:WELL). Welltower Inc. (NYSE:WELL) is a REIT that drives the transformation of healthcare infrastructure. The one-month return of Welltower Inc. (NYSE:WELL) was -2.63%, and its shares gained 42.05% of their value over the last 52 weeks. On May 14, 2025, Welltower Inc. (NYSE:WELL) stock closed at $143.40 per share with a market capitalization of $93.777 billion. Baron Real Estate Fund stated the following regarding Welltower Inc. (NYSE:WELL) in its Q1 2025 investor letter: "Shares of Welltower Inc. (NYSE:WELL) continued to significantly outperform both the REIT and broader equity indices. We believe Welltower offers both 'offensive' and 'defensive' investment attributes in the current uncertain macroenvironment. Welltower is an operator of senior housing, life science, and medical office real estate properties. Given most of the company's cash flows are derived from senior housing, 'defensive' characteristics are underpinned by a 'needs based' service offering. Welltower owns senior housing properties in some of the best micro-markets with substantial pricing power given the company serves a higher net worth demographic. Aerial view of a healthcare facility with a bustling parking lot. Welltower Inc. (NYSE:WELL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Welltower Inc. (NYSE:WELL) at the end of the fourth quarter which was 37 in the previous quarter. While we acknowledge the potential of Welltower Inc. (NYSE:WELL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Welltower Inc. (NYSE:WELL) and shared the list of best-performing real estate stocks. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Here's Why Welltower (WELL) Surged in Q1
Baron Funds, an investment management company, released its 'Baron Real Estate Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1 2025, stocks were sold due to economic growth slowdown, inflation, and policymaking issues, including Baron Real Estate Fund®, without considering value. The fund declined 6.69% (Institutional Shares) in the quarter compared to a 3.11% decline for the MSCI USA IMI Extended Real Estate Index (the MSCI Real Estate Index) and a 0.76% gain for the MSCI US REIT Index (the REIT Index). In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Baron Real Estate Fund highlighted stocks such as Welltower Inc. (NYSE:WELL). Welltower Inc. (NYSE:WELL) is a REIT that drives the transformation of healthcare infrastructure. The one-month return of Welltower Inc. (NYSE:WELL) was -2.63%, and its shares gained 42.05% of their value over the last 52 weeks. On May 14, 2025, Welltower Inc. (NYSE:WELL) stock closed at $143.40 per share with a market capitalization of $93.777 billion. Baron Real Estate Fund stated the following regarding Welltower Inc. (NYSE:WELL) in its Q1 2025 investor letter: "Shares of Welltower Inc. (NYSE:WELL) continued to significantly outperform both the REIT and broader equity indices. We believe Welltower offers both 'offensive' and 'defensive' investment attributes in the current uncertain macroenvironment. Welltower is an operator of senior housing, life science, and medical office real estate properties. Given most of the company's cash flows are derived from senior housing, 'defensive' characteristics are underpinned by a 'needs based' service offering. Welltower owns senior housing properties in some of the best micro-markets with substantial pricing power given the company serves a higher net worth demographic. Aerial view of a healthcare facility with a bustling parking lot. Welltower Inc. (NYSE:WELL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Welltower Inc. (NYSE:WELL) at the end of the fourth quarter which was 37 in the previous quarter. While we acknowledge the potential of Welltower Inc. (NYSE:WELL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Welltower Inc. (NYSE:WELL) and shared the list of best-performing real estate stocks. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Welltower price target raised to $170 from $166 at Scotiabank
Scotiabank raised the firm's price target on Welltower (WELL) to $170 from $166 and keeps an Outperform rating on the shares. The firm is adjusting its estimates on U.S. Real Estate & REITs in its coverage following Q1 results, the analyst tells investors. Quarterly results contained some negative surprises, but generally played out as expected, with most companies maintaining FY25 guidance, the firm notes. Real estate fundamentals tend to lag, so many are looking to see the potential impact of the slowing economy on H2 2025 results, the firm adds. Scotiabank notes it prefers Welltower Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on WELL: Disclaimer & DisclosureReport an Issue Welltower price target lowered to $240 from $242 at BofA GE Vernova, EQT, OneMain, Welltower, Butterfly Network Shake Markets Ventas price target raised to $79 from $78 at Wedbush Welltower price target raised to $169 from $167 at Wedbush Welltower Inc. Reports Strong Q1 2025 Earnings
Yahoo
13-05-2025
- Business
- Yahoo
3 Reasons Why Growth Investors Shouldn't Overlook Welltower (WELL)
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock. In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. Our proprietary system currently recommends Welltower (WELL) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank. Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). While there are numerous reasons why the stock of this senior housing and health care real estate investment trust is a great growth pick right now, we have highlighted three of the most important factors below: Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for Welltower is 3.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 15.5% this year, crushing the industry average, which calls for EPS growth of 0.5%. Growth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales. Right now, Welltower has an S/TA ratio of 0.17, which means that the company gets $0.17 in sales for each dollar in assets. Comparing this to the industry average of 0.13, it can be said that the company is more efficient. While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Welltower is well positioned from a sales growth perspective too. The company's sales are expected to grow 23.5% this year versus the industry average of 1.8%. Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. There have been upward revisions in current-year earnings estimates for Welltower. The Zacks Consensus Estimate for the current year has surged 0.5% over the past month. Welltower has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination indicates that Welltower is a potential outperformer and a solid choice for growth investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Welltower Inc. (WELL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
