Ventas, Inc. (VTR), headquartered in Chicago, Illinois, is a leading real estate investment trust (REIT) enabling exceptional environments that benefit a large and growing aging population. Valued at $24.7 billion by market cap, the company owns seniors housing communities, skilled nursing facilities, hospitals, and medical office buildings in the U.S. and Canada.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and VST perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the REIT - healthcare facilities industry. Ventas' diversified portfolio provides resilience against market fluctuations, with strong rental income from triple-net leased properties and outpatient medical and research facilities. Their strategic investments in mature healthcare markets like Canada and the United Kingdom offer long-term growth potential.
Despite its notable strength, VTR slipped 12.8% from its 52-week high of $67.61, achieved on Oct. 31. Over the past three months, VTR stock has declined 8.2%, underperforming the Nasdaq Composite’s ($NASX)10% gains during the same time frame.
In the longer term, shares of VTR rose 16.9% over the past six months, outperforming NASX’s six-month gains of 11.7%. However, the stock climbed 18.1% over the past 52 weeks, underperforming NASX’s solid 31.8% returns over the last year.
To confirm the bullish trend, VTR has been trading above its 200-day moving average since late April. However, the stock is trading below its 50-day moving average since early December.
On Oct. 30, VTR shares closed up marginally after reporting its Q3 results. Its FFO of $0.80 matched the analyst estimates. The company’s revenue was $1.24 billion, surpassing Wall Street forecasts of $1.21 billion. VTR expects full-year FFO in the range of $3.14 to $3.18.
In the competitive arena of REIT - healthcare facilities, Omega Healthcare Investors, Inc. (OHI) has taken the lead over VTR, showing resilience with a 23.6% uptick over the past 52 weeks. However, OHI lagged behind the stock with 14.9% gains over the past six months.
Wall Street analysts are moderately bullish on VTR’s prospects. The stock has a consensus “Moderate Buy” rating from the 19 analysts covering it, and the mean price target of $69.72 suggests a potential upside of 18.3% from current price levels.
