CTRE Stock Analysis — CareTrust REIT
Sector: Healthcare REIT
AI Verdict
CTRE trades at 26x next year’s earnings while analysts expect just 10.4% EPS growth—you're paying a premium the numbers don't yet support, unless its healthcare real estate moat delivers upside surprises.
Competitive Moat
CareTrust REIT specializes in owning and leasing healthcare properties, primarily skilled nursing and senior housing, with long-term triple-net leases that lock in predictable cash flows. Its defensibility comes from the high switching costs and regulatory barriers in healthcare real estate, making tenant turnover and new competition less likely.
Summary
CTRE is notable right now for its 60.8% year-over-year revenue growth, signaling aggressive portfolio expansion.
Where It Stands
CTRE trades at 26.0x forward earnings, well above the healthcare sector median of 22x, while delivering 10.4% expected EPS growth and a trailing PEG of 2.75.
Key Metrics
- Trailing P/E: 28.7x
- Forward P/E: 26.0x
- PEG Ratio: 2.75
- Earnings Growth: +0.1%
- Revenue Growth: +0.6%
- Dividend Yield: 0.04%
- 52-Week High: $41.72
- 52-Week Low: $27.72
Analyst Consensus
16 Buy · 2 Hold · 0 Sell (18 analysts)
Bull Case
The 60.8% revenue growth and 10.4% forward EPS growth suggest that CTRE is scaling its property base and earnings faster than most healthcare REIT peers.
Bear Case
With a 26.0x forward P/E and a PEG of 2.75, CTRE is expensive for its growth rate, so any P/E compression toward the 22x sector median would mean a 15%+ valuation drop even if earnings meet expectations.
Catalyst to Watch
Watch for upcoming property acquisitions or lease renewals—if these drive EPS above the 10.4% growth consensus, the premium could be justified.