Since eventually, all our money ends up in the hands of the healthcare industry, this article reported results calculated as of August 9, 2013 projecting gains one year hence for Health Facilities REITs. Sabra Health Care REIT (SBRA), the California headquartered healthcare property trust with over 9,600 licensed beds in facilities leased in 19 states, showed a 22.05% price upside to lead the top five.
In case you want a piece of the Healthcare action from the facilities side, the chart above used the one year mean target price set by brokerage analysts matched against August 9 closing price to compare 5 Health Facilities REIT stocks showing the highest upside price potential into 2014. These were: Sabra Health Care (as noted above) with a 22.05%% price gain; Healthcare Trust of America (HTA) showed 19.71% upside; HCP, Inc. (HCP) showed a 16.4% price upside; Omega Healthcare (OHI) showed 15.08% upside; Ventas, Inc. (VTR) showed a 14.67% price upside.
The number of analysts providing price estimates was noted after the name for each stock. Three to nine analysts were considered optimal for a valid mean target price estimate.
Wall Street Wizards Wrangle A 20.7% Average Net Gain from 5 Health Facilities REIT Stocks By 2014
Five YCharts picks were graphed below to show relative strengths by dividend and price as of August 9, 2013 and those projected by Yahoo Finance analyst mean 1 year target estimates to the same date in 2014.
A hypothetical $1000 investment in each stock was divided by the current share price to find the number of shares purchased. The shares number was then multiplied by projected annual per share dividend amounts to find the dividend return. Thereafter the analyst mean target price was used to gauge the stock price upsides and net gains including any dividends less broker fees as of 2014.
Historic prices and actual dividends paid from $1000 invested in the five stocks and the aggregate single share prices of those stocks created data points for 2013. Projections based on estimated dividend amounts from $1000 invested in each of the five highest yielding stocks and aggregate one year analyst target share prices from Yahoo Finance created the 2014 data points. The green line showed price and blue showed dividend.
YCharts projected a 15% lower dividend from $10K invested in this group while aggregate single share price was projected to increase over 16.5% in the coming year. The number of analysts contributing to the mean target price estimate for each stock was noted in the next to the last column on the chart. Three to nine analysts was considered best for a valid projection estimate.
A beta (risk) ranking for each analyst rated stock was provided in the far right column on the chart above. A beta of 1 meant the stock's price would move with the market. Less than 1 showed less than market movement. Higher than 1 showed greater than market movement. Negative numbers show movement the opposite of market direction.
Five Health Facilities REIT Stocks Net 16.8% to 25.4% by July 2014
Five possible profit generating stock trades from $1k invested in each revealed by YCharts and Yahoo Finance for 2014 were:
- Sabra Health Care REIT netted $254.57, based a mean target price estimate by six analysts less $20 in broker fees. The Beta number showed this estimate subject to volatility 75% more than the market as a whole.
- Healthcare Trust of America. netted $230.46 based on a mean target price estimate from three analysts less $20 in broker fees. The Beta number showed this estimate subject to volatility 42% less than the market as a whole.
- HCP, Inc. netted $193.54 based on a mean target price estimate from twelve analysts combined with projected annual dividend less $20 in estimated broker fees. The Beta number showed this estimate subject to volatility 40% less than the market as a whole.
- Omega Healthcare netted $192.05, based on mean target price estimates from three analysts less the usual broker fee. The Beta number showed this estimate subject to volatility 4% greater than the market as a whole.
- Ventas, Inc. netted $168.21 based on a mean target price estimate from eleven analysts less the broker fees. The Beta number showed this estimate subject to volatility 47% less than the market as a whole.
The average net gain in dividend and price was 20.77% on $5k invested ($1k each) in these five stocks. This gain estimate was subject to average volatility 10% less than the market as a whole.
The stocks listed above were suggested only as decent starting points for your Health Facilities REIT stock purchase research process. These were not recommendations.
Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.