Welltower Inc. Reports Strong Growth Amid Competitive Market

Toledo, Ohio-based Welltower Inc. (WELL) has a market cap of $94.6 billion and operates as a real estate investment trust (REIT). The company collaborates with leading senior housing operators and post-acute providers to build the real estate infrastructure essential for innovative care delivery models that enhance wellness and healthcare experiences.

Falling into the “large-cap stocks” category, Welltower is recognized as a key player in the real estate sector. The company has significant investments in properties located in major, high-growth markets throughout the U.S., Canada, and the U.K.

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The performance of Welltower stock has been noteworthy; it recently reached an all-time high of $158.55 on March 4 but currently trades 7% below that peak. In the past three months, WELL stock surged by 12.2%, outpacing the S&P 500 Index’s decline of 5.3% for the same period.

Looking at longer-term trends, Welltower’s performance becomes even more significant. Over the last six months, WELL stock increased by 18.3%, and over the past year, the stock has risen 60.2%. These figures stand in stark contrast to the S&P 500’s 6.7% gains over the last six months and 11.9% over the year.

To validate this upward trend, Welltower stock has consistently traded above its 200-day moving average for the past year and has remained above its 50-day moving average since mid-January.

Following the release of its Q4 results on February 11, Welltower’s stock prices increased by 2.2%. The company’s total revenues grew by 28.6% year-over-year, reaching approximately $2.3 billion. Additionally, Welltower reported a robust 12.8% year-over-year increase in comparable net operating income, resulting in nearly a 43% rise in net income attributable to shareholders, totaling around $120 million. Furthermore, its normalized funds from operations saw a 17.7% year-over-year increase to $1.13 per share, surpassing analysts’ expectations and boosting investor confidence.

In competitive terms, Welltower outperformed its leading rival, Ventas, Inc. (VTR), which saw increases of 8% over the last six months and 55.9% over the past year.

Given Welltower’s solid performance, analysts maintain a positive outlook on the company’s future. Among the 19 analysts covering the stock, it holds a consensus “Strong Buy” rating. The mean price target stands at $72.89, suggesting a 7.4% potential upside from current market levels.

As of the publication date, Aditya Sarawgi did not hold any direct or indirect positions in the mentioned securities. All data provided in this article serves informational purposes only. For more details, please refer to the Barchart Disclosure Policy here.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.