CareTrust REIT, Inc. (CTRE) recently caught the attention of investors after BMO Capital analyst Juan Sanabria upgraded the company to an “Outperform” rating on January 9, 2026, with a price target set at $43. This upgrade indicates a bullish sentiment surrounding the stock, suggesting that CareTrust REIT may present a compelling investment opportunity as it trades at $36.93.
Market / Price Action
CTRE’s stock has demonstrated a modest uptick, increasing by approximately 2.99% recently, as investors reacted positively to the upgrade. Its current price of $36.93 is notably $3.63 below its 52-week high, while hovering closer to its 52-week low of $48.97. Over the last trading sessions, CTRE has exhibited some volatility, with a weekly price change of 1.11 and a trading volume of 517,863 shares, below its 3-month average of 1,718,156 shares. This discrepancy in trading volume could suggest shifting investor sentiment as the market fluctuates. With a market capitalization of approximately $7.35 billion and a beta of 0.772, the stock has exhibited relatively lower volatility compared to the broader market, hinting at stable performance amidst industry fluctuations.
Short- and Long-Term Performance
Examining CTRE’s performance reveals intriguing trends. Over the past 30 days, the stock has faced a slight decline of 2.04%, and despite a positive quarterly performance of 6.76%, it lags behind its yearly return of an impressive 39.25%. This annual increase indicates strong recovery and growth potential, possibly reflecting broader trends within the real estate investment trust (REIT) sector. Furthermore, the stock reflects a weekly volatility of 2.8%, showing modest fluctuations that may entice traders looking for short-term opportunities within a generally stable investment environment.
Earnings / Financials
In terms of financial health, CareTrust’s latest earnings report, released on November 5, 2025, revealed an earnings per share (EPS) of $0.35, falling short of the estimated $0.47 by approximately 25.53%. This missed expectation follows a prior earnings report where it recorded an EPS of $0.43, also slightly below estimates. The recent earnings surprises raise flags regarding the company’s ability to consistently meet analyst expectations, which could affect investor confidence in the short term. However, the trajectory of EP’s over the past year suggests potential for recovery, especially if the company can align its performance more closely with estimates moving forward.
Analyst / Consensus View
The consensus view among analysts further emphasizes the positive sentiment surrounding CareTrust REIT. Currently, the stock enjoys a total of seven ratings, all classified as “Buy,” with no “Hold” or “Sell” ratings in sight. The average price target of $41.86 is close to BMO Capital’s targeted $43, indicating a significant upside potential of approximately 16.5% from its current trading price. The high price target matches BMO’s prediction, reinforcing the bullish perspective on the stock and suggesting that the market believes in its growth trajectory.
Stock Grading or Fundamental View
CareTrust REIT’s Stocks Telegraph Grade (ST Score) stands at 61, a testament to its overall financial health and investment profile. This score encapsulates various factors, including financial performance, market conditions, and operational stability, providing a well-rounded perspective on the company’s strengths relative to its competitors. The relatively solid grade supports the bullish analyst ratings and indicates that the company holds strong fundamentals, making it a suitable candidate for growth-focused investors.
Conclusion
For investors with an eye on long-term growth, CareTrust REIT represents an intriguing opportunity, particularly in light of its favorable analyst outlook and strong annual performance. However, potential investors should be cautious regarding the recent earnings miss, as this could signal areas needing improvement. For those willing to weather short-term volatility in exchange for long-term capital appreciation, CTRE might be worth monitoring closely. Balancing its potential rewards against recent performance inconsistencies will be essential for investors considering positioning themselves in this REIT.