Healthcare real estate investment trust (REIT) Welltower Inc (NYSE:WELL) is firing on multiple cylinders that growth-minded investors look for. To surface such names, we screened the market for stocks combining a high ChartMill High Growth Momentum Rating (HGM) of at least 4, a Technical Rating above 7, and a Setup Rating above 7. This triple-filter approach is rooted in the CANSLIM and Mark Minervini playbooks, which demand not only accelerating earnings and sales but also a stock that is technically sound and forming a proper buy point. WELL clears all three hurdles, making it an intriguing candidate for further analysis.
ChartMill’s HGM Rating evaluates the short-term earnings momentum that growth investors prize. WELL scores a solid 6 out of 10 on this metric, and the underlying data explains why. The most recent quarter’s earnings per share (EPS) growth came in at a staggering 155% year-over-year (Q2Q). While the three preceding quarters showed more volatility (one quarter declined 26.3%, another 43.8%), the current surge is a strong catalyst. Analysts also expect this momentum to continue, with the next quarter estimated to deliver EPS growth of 52.9% versus the prior year. Revenue growth is equally impressive, with the latest quarter showing 38.3% year-over-year expansion, and the firm has beaten revenue estimates in each of the last four quarters, averaging a 4.6% surprise. Furthermore, analysts have been raising their sights: the average estimate for next year’s EPS has been revised higher by 19.2% over the last three months (EPS Next Y revision 3m). This combination of accelerating growth, consistent revenue beats, and upward estimate revisions is exactly the kind of fundamental fuel that high-growth momentum strategies seek.
Turning to the technical picture, a strong fundamental story is best paired with a stock that is acting well—and WELL is doing just that. The ChartMill Technical Rating sits at 7 out of 10, reflecting a healthy long-term trend. The stock has outperformed 72% of all stocks over the past year, and the long-term trend is classified as positive. The S&P 500’s long- and short-term trends are both positive, providing a supportive macro backdrop for leading stocks. Even more critical for active traders is the Setup Rating, which also comes in at 7 out of 10. This signals that WELL is not just rising, but is in a consolidation or base-building phase after its recent advances. According to the technical analysis report, the stock is currently trading in the middle of its recent range (between 194.67 and 219.75), and the daily chart shows prices consolidating. The analysis identifies a potential buy stop entry near $215.74 (just above the 10-day high) with a stop loss near $205.42 (below a support zone), placing a 4.78% risk on the trade. This setup—strong earnings momentum combined with a well-defined technical entry—is the classic pattern that growth traders look for.
While WELL offers a strong combination of fundamental momentum and technical structure, it is only one result from a broader universe. Investors looking for similar setups can find more candidates by running the same screen.
Check out more High Growth Momentum Breakout Setups by clicking here: ChartMill High Growth Momentum Breakout Setups Screen
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading and investing in securities involves substantial risk of loss. Readers should conduct their own due diligence and consult with a licensed financial advisor before making any investment decisions.
Read full article here »
View the Zacks #1 Rank List
Welltower Inc (NYSE:WELL) Breaks Out with Triple-Filter Growth Setup
Healthcare real estate investment trust (REIT) Welltower Inc (NYSE:WELL) is firing on multiple cylinders that growth-minded investors look for. To surface such names, we screened the market for stocks combining a high ChartMill High Growth Momentum Rating (HGM) of at least 4, a Technical Rating above 7, and a Setup Rating above 7. This triple-filter approach is rooted in the CANSLIM and Mark Minervini playbooks, which demand not only accelerating earnings and sales but also a stock that is technically sound and forming a proper buy point. WELL clears all three hurdles, making it an intriguing candidate for further analysis.
ChartMill’s HGM Rating evaluates the short-term earnings momentum that growth investors prize. WELL scores a solid 6 out of 10 on this metric, and the underlying data explains why. The most recent quarter’s earnings per share (EPS) growth came in at a staggering 155% year-over-year (Q2Q). While the three preceding quarters showed more volatility (one quarter declined 26.3%, another 43.8%), the current surge is a strong catalyst. Analysts also expect this momentum to continue, with the next quarter estimated to deliver EPS growth of 52.9% versus the prior year. Revenue growth is equally impressive, with the latest quarter showing 38.3% year-over-year expansion, and the firm has beaten revenue estimates in each of the last four quarters, averaging a 4.6% surprise. Furthermore, analysts have been raising their sights: the average estimate for next year’s EPS has been revised higher by 19.2% over the last three months (EPS Next Y revision 3m). This combination of accelerating growth, consistent revenue beats, and upward estimate revisions is exactly the kind of fundamental fuel that high-growth momentum strategies seek.
Turning to the technical picture, a strong fundamental story is best paired with a stock that is acting well—and WELL is doing just that. The ChartMill Technical Rating sits at 7 out of 10, reflecting a healthy long-term trend. The stock has outperformed 72% of all stocks over the past year, and the long-term trend is classified as positive. The S&P 500’s long- and short-term trends are both positive, providing a supportive macro backdrop for leading stocks. Even more critical for active traders is the Setup Rating, which also comes in at 7 out of 10. This signals that WELL is not just rising, but is in a consolidation or base-building phase after its recent advances. According to the technical analysis report, the stock is currently trading in the middle of its recent range (between 194.67 and 219.75), and the daily chart shows prices consolidating. The analysis identifies a potential buy stop entry near $215.74 (just above the 10-day high) with a stop loss near $205.42 (below a support zone), placing a 4.78% risk on the trade. This setup—strong earnings momentum combined with a well-defined technical entry—is the classic pattern that growth traders look for.
While WELL offers a strong combination of fundamental momentum and technical structure, it is only one result from a broader universe. Investors looking for similar setups can find more candidates by running the same screen.
Check out more High Growth Momentum Breakout Setups by clicking here: ChartMill High Growth Momentum Breakout Setups Screen
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Trading and investing in securities involves substantial risk of loss. Readers should conduct their own due diligence and consult with a licensed financial advisor before making any investment decisions.
Read full article here »