U.S. stocks fall as Waller news weighs; Apple adds to gains
WELL, the stock symbol representing Health Care REIT (NYSE:WELL), has achieved a remarkable milestone by soaring to an all-time high of $133.48 USD. This significant peak reflects a robust performance in the healthcare real estate sector, underpinned by a growing demand for healthcare facilities and an aging population. Over the past year, WELL has witnessed an impressive 59.48% increase, underscoring investor confidence and the company's strong market position. This surge to record levels marks a notable achievement for WELL and highlights the potential for continued growth in the healthcare real estate investment trusts industry.
In other recent news, Welltower Inc. announced a new equity distribution agreement that could potentially raise up to $5 billion through the sale of common stock. The agreement, which replaces a previous one dated April 30, 2024, involves sales agents such as BofA Securities, Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC, among others. The total sales will not exceed the $5 billion cap set by the agreement.
In recent financial highlights, Welltower reported a third-quarter performance exceeding analyst expectations. The healthcare real estate investment trust recorded an adjusted earnings per share of $0.73, surpassing the analyst consensus of $0.38. Revenue for the same period was $2.06 billion, exceeding estimates of $1.95 billion.
The strong performance is attributed to growth in the company's Seniors Housing Operating (SHO) portfolio, which reported a 23% YoY same-store net operating income growth. Welltower has raised its full-year 2024 earnings guidance to $1.75-$1.81 per share, up from its previous forecast of $1.52-$1.60. The company also improved its net debt to Adjusted EBITDA ratio to 3.73x, down from 5.14x a year ago.
InvestingPro Insights
WELL's recent surge to an all-time high is further supported by InvestingPro data and insights. The company's market capitalization stands at an impressive $80.76 billion USD, reflecting its significant presence in the Health Care REITs industry. WELL has demonstrated strong financial performance, with revenue growth of 17.51% over the last twelve months as of Q2 2024, reaching $7.16 billion USD. This growth aligns with an InvestingPro Tip indicating that analysts anticipate continued sales growth in the current year.
The stock's momentum is evident in its recent price performance, with a 37.95% total return over the past six months and a robust 64.65% return over the last year. These figures corroborate the article's mention of WELL's 59.48% increase over the past year. An InvestingPro Tip notes that WELL has maintained dividend payments for 49 consecutive years, highlighting its stability and appeal to income-focused investors.
While WELL trades at a high P/E ratio of 123.01, an InvestingPro Tip suggests it's trading at a low P/E ratio relative to near-term earnings growth, with a PEG ratio of 0.41. This indicates potential undervaluation considering its growth prospects. For investors seeking more comprehensive analysis, InvestingPro offers 16 additional tips for WELL, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.