Stock of the Day

July 30, 2021

Welltower (WELL)

$148.69
-$1.63 (-1.1%)
Market Cap: $96.40B

About Welltower

Welltower Inc. (NYSE:WELL), a real estate investment trust ("REIT") and S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. Welltower invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties.

Welltower Bull Case

Here are some ways that investors could benefit from investing in Welltower Inc.:

  • Welltower Inc. has recently been upgraded by Wedbush from a "neutral" rating to an "outperform" rating, indicating strong confidence in the stock's potential for growth.
  • The current stock price is $150.03, which is significantly higher than its one-year low of $87.87, suggesting a strong recovery and positive market sentiment.
  • Analysts have set a price target of $167.00, which implies a potential upside of 11.31% from the current price, making it an attractive investment opportunity.
  • Welltower Inc. reported earnings per share (EPS) of $1.13 for the latest quarter, surpassing analysts' expectations, which reflects strong operational performance.
  • The company has a solid market capitalization of approximately $96.21 billion, indicating stability and a strong position in the real estate investment trust sector.

Welltower Bear Case

Investors should be bearish about investing in Welltower Inc. for these reasons:

  • Despite recent upgrades, one analyst has rated the stock with a "sell" rating, indicating some skepticism about its future performance.
  • The stock has a high price-to-earnings (P/E) ratio of 98.70, which may suggest that it is overvalued compared to its earnings, potentially leading to a price correction.
  • Welltower Inc. has a relatively low return on equity of 3.20%, which may indicate less efficient use of equity capital compared to peers.
  • There is a significant amount of institutional ownership at 94.80%, which can lead to volatility if large investors decide to sell their positions.
  • The company has a beta of 1.23, suggesting that its stock price is more volatile than the market, which could pose risks for conservative investors.

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