Stock of the Day

July 30, 2021

Welltower (WELL)

$153.76
+$0.73 (+0.5%)
Market Cap: $100.54B

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.:

  • The current stock price is around $155, reflecting a recent increase, which may indicate positive market sentiment towards the company.
  • Welltower Inc. reported a significant year-over-year revenue growth of over 30%, showcasing its strong operational performance and potential for future profitability.
  • The company has consistently beaten earnings expectations, with the latest earnings per share reported at $1.20, surpassing analyst estimates, which can enhance investor confidence.
  • Welltower Inc. has a robust market capitalization of approximately $101.50 billion, indicating its strong position in the real estate investment trust sector.
  • The firm has a relatively low debt-to-equity ratio of 0.48, suggesting a conservative approach to leverage, which can be appealing to risk-averse investors.

Welltower Bear Case

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

  • The company's payout ratio is notably high at 154.02%, which may raise concerns about sustainability in dividend payments, especially in economic downturns.
  • Despite recent growth, the price-to-earnings ratio stands at 99.49, indicating that the stock may be overvalued compared to its earnings, which could deter value-focused investors.
  • Welltower Inc. has received mixed ratings from analysts, with some maintaining a "sell" rating, which could signal potential risks in the stock's future performance.
  • The stock has a beta of 0.94, suggesting it is less volatile than the market, which may not appeal to investors seeking high-risk, high-reward opportunities.
  • Recent changes in institutional holdings indicate a cautious approach from some investors, which could reflect broader market uncertainties affecting the real estate sector.
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