Health Care REIT Could Be Just What the Doctor Ordered

by Sam Collins | July 6, 2012 1:03 am

Health Care REIT (NYSE:HCN[1]) — This Real Estate Investment Trust’s (REIT) portfolio consists of senior and health care real estate, including senior housing communities, skilled nursing/post-acute facilities, medical office buildings, inpatient and outpatient medical centers, and life science facilities. Last year, HCN also acquired Genesis Healthcare Corp.

This REIT has had a steady increase in earnings, reporting $2.18 in 2010 and $3.01 in 2011, and with estimates of $3.56 for 2012 and $3.93 for 2013. It has high predictability due to the large number of triple net leases and the resultant revenue stream.

Technically HCN is in a powerful bull market as it hugs its 200-day moving average and bullish support line. However, following last week’s breakout, it appears slightly overbought as confirmed by the stochastic.

Buy the stock under $56 for a run to $63 or as a long-term hold. HCN has a dividend yield of 5%.

Trade of the Day – Health Care REIT (NYSE:HCN)
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Trade of the Day Chart Key

  1. HCN:

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