3 Reasons Growth Investors Will Love CareTrust REIT (CTRE)

Group 1: Core Insights - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] - CareTrust REIT (CTRE) is highlighted as a recommended growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive as it indicates strong future prospects [3] - CareTrust REIT's projected EPS growth for this year is 20.5%, significantly outperforming the industry average of 0.7% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [5] - CareTrust REIT's year-over-year cash flow growth stands at 67.6%, far exceeding the industry average of 2.8% [5] - The company's historical annualized cash flow growth rate over the past 3-5 years is 12.5%, compared to the industry average of 3.1% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, making them an important consideration for investors [7] - CareTrust REIT has experienced upward revisions in current-year earnings estimates, with a 0.6% increase in the Zacks Consensus Estimate over the past month [7] Group 5: Conclusion - CareTrust REIT has achieved a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [9]