I like to find stocks poised to profit from massive secular headwinds, and CareTrust REIT, trading symbol CTRE, is one of those stocks. America's aging population stands at a crossroads, and we must ensure that we can support and care for these elderly people.
CareTrust went public as a spin-off company 12 years ago. Investors in that split now own a stock whose value has increased tenfold. This is where things get interesting for the future.
It owns just over 400 properties in the United States. This represents less than 3% of the total available senior housing properties, and the company excels as an aggregator of these assets.
About a third of the establishments in this sector, and there are about 15,000 establishments, are owned by small operators who own only one or two establishments. The other half is owned by people who own between three and 20 establishments.
This falls squarely within the ideal scope for CareTrust's acquisitions. Most of these angels, Dan, are baby boomers. They are looking for exit strategies from those businesses.
Therefore, these are excellent trends. This company is a proven capital provider and acquirer. Therefore, investors who wish to continue to achieve returns that outperform the market should consider CareTrust going forward.