Welltower Inc. (WELL), headquartered in Toledo, Ohio, is a real estate investment trust (REIT) specializing in healthcare infrastructure. With a market cap of $76.93 billion, Welltower invests in senior housing, post-acute care communities, and outpatient medical properties across the U.S., Canada, and the U.K. It competes with major healthcare REITs like Ventas, Inc. (VTR).
Companies valued at $10 billion or more are classified as "large-cap" stocks, and Welltower is a prime example of this, reflecting its significant scale, stability, and influence within the healthcare real estate sector. As a leading REIT, Welltower's size status underscores its robust portfolio, strategic growth initiatives, and pivotal role in advancing healthcare infrastructure across its markets.
WELL shares are trading marginally below their 52-week high of $129.11, which they hit on Sep. 10. However, the stock has gained 25.2% over the past three months, outperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 17.2% gains over the same time frame.
In the longer term, WELL is up 42.9% on a YTD basis, and the shares have gained 54.1% over the past 52 weeks. The XLRE has gained 12.1% in 2024 and 22.5% over the past year.
To confirm its bullish trend, WELL has been trading above its 50-day moving average since late April and its 200-day moving average over the past year.
WELL’s stock surged 1.7% on Jul. 29 following the release of its Q2 earnings report. Although its funds from operations (FFO) of $1.05 per share exceeded Street forecasts, its revenue of $1.8 billion fell short of analysts’ expectations of $1.9 billion. Moreover, Welltower now projects 2024 normalized FFO per share between $4.13 and $4.21, up from the prior-guided range of $4.05 to $4.17.
Highlighting the contrast in performance, rival VTR has underperformed WELL, with a 30.4% gain on a YTD basis.
Given WELL's recent outperformance compared to the XLRE, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 19 analysts in coverage. The mean price target is $122.61, which indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari 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.
