Medical Properties Trust: Ignore The Bears And Buy This Capitulation Move

Summary

  • MPW has crumbled from its August highs, as it nearly gave up all its gains from the recovery from its June lows. Therefore, market sentiments have turned negative again.
  • We surmise that Medical Properties Trust's underlying metrics should be impacted through FQ4 as it laps FY21's comps. However, we are confident that its valuations have reflected its headwinds.
  • We also observed that the market could be forcing a capitulation move on MPW as it nears its June bottom.
  • We discuss why investors should not be unduly concerned and why we think its June lows should hold.
  • We rate MPW as a Buy.
  • I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
Empty corridor in modern hospital with information counter and hospital bed in rooms.3d rendering

Ninoon

Thesis

Medical Properties Trust, Inc. (NYSE:MPW) stock's gains from its June lows have dissipated as the market parsed the lack of disclosure for its most prominent tenant, Steward, from management after its Q2 earnings in early August.

Therefore, the battering continues

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This article was written by

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JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks.

He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing.

He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.

He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out.

The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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