CTRE is a recommended buy for investors seeking outperformance due to its role as a consolidator in the senior housing market.
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I like to find stocks poised to profit from massive secular headwinds, and CareTrust, ticker symbol CTRE, is one of those companies. CareTrust was listed as a subsidiary 12 years ago.
Investors in that offering achieved returns of up to ten times their investment.
She owns just over 400 properties in the United States. This represents less than 3% of the total senior citizen housing market, and it is successful because it operates as a consolidation company.
About a third of the facilities in this sector, approximately 15,000 establishments, are owned by small operators who own only one or two establishments. The other half is owned by owners who own between three and 20 establishments.
This falls squarely within CareTrust's acquisition interest. Most of these owners, Dan, are from the baby boomer generation. They are looking for exit strategies from those businesses. So, these are great trends.
This is a company that has proven its efficiency in capital allocation and acquisition. I believe that investors who want to continue to achieve returns that outperform the market should consider CareTrust going forward.
I mean, CareTrust is associated with two things that are no longer being made, right? Earth and time. So, I'm somewhat interested.
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