DIA442.05+1.90 0.43%
SPX6,260.33+16.57 0.27%
IXIC20,721.08+43.28 0.21%

Ventas Stock Gains 11.6% in 6 Months: Will the Trend Last?

Barchart·07/14/2025 11:16:25
Listen to the news

Shares of Ventas VTR have gained 11.6% in the past six months compared with the industry’s 6% growth.

This Chicago-based healthcare real estate investment trust (”REIT”) is well-poised to benefit from its diverse portfolio of healthcare real estate assets in the key markets of the United States and the U.K. An aging population and the rise in healthcare expenditure by senior citizens are likely to benefit the senior housing operating portfolio (SHOP).

The outpatient medical portfolio is expected to gain from favorable outpatient visit trends. Ventas’ accretive investments to expand its research portfolio are encouraging.

Zacks Investment Research
Image Source: Zacks Investment Research

Let us check out the possible factors behind the surge in the share price for this Zacks Rank #3 (Hold) company and see whether the trend will continue or not.

The senior citizen population is expected to rise in the years ahead. As a result, the national healthcare expenditures of senior citizens, who constitute a major customer base for healthcare services and incur higher healthcare expenditures than the average population, are likely to increase in the upcoming period.

With an expectation of a rising senior citizens’ population in the years ahead and low new supply in its markets, Ventas is well-prepared for a compelling multiyear growth opportunity. The increasing U.S. aging population is fueling the senior housing demand for this healthcare REIT. This is expected to drive the company’s top line. In 2025, Ventas expects its SHOP segment's same-store cash NOI to grow between 11% and 16%. The company expects the SHOP business to represent more than half of its total NOI by year-end 2025.

Amid growing outpatient trends, Ventas is committed to capitalizing on this upside within its outpatient medical and research (OM&R) portfolio. The growth in the population aged 65 years and above is driving the increase in outpatient visits, as they make three times more visits to the doctor than the general population. Therefore, the portfolio is well-positioned to capitalize on this rising demand. The company expects the OM&R portfolio's same-store cash NOI to grow in the range of 2-3% in 2025.

Ventas is carrying out accretive investments to enhance its research portfolio, which is essential for the delivery of crucial healthcare services and research related to life-saving vaccines and therapeutics. The company owns research centers in life science clusters, with a presence in some of the top-tier research university campuses. With top-rated tenants and long-lease leases, its high-quality portfolio assures steady growth in cash flows.

Ventas has been making efforts to enhance its liquidity position and financial strength. As of March 31, 2025, the company had approximately $2.9 billion of liquidity. In April 2025, VTR increased its liquidity to $3.6 billion by expanding the unsecured credit facility by $750 million to $3.5 billion. Management expects continued leverage improvement in the balance of this year, driven by senior housing growth. Ventas’ access to diverse capital sources through capital recycling, on-balance sheet financing and internal cash flow provides ample financial flexibility and is likely to support its growth endeavors.

With the above-mentioned factors, we believe the rising trend in the stock is expected to continue in the near term.

Risks Likely to Affect VTR’s Positive Trend

Competition from national and local operators limits its power to raise rents and drive profitability. Dependence on a few tenants poses key concerns for Ventas. Substantial debt burden adds to its woes.

Stocks to Consider

Some better-ranked stocks from the broader REIT sector include SBA Communications SBAC and American Tower AMT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for SBAC’s 2025 FFO per share has moved 3 cents northward to $12.74 over the past two months.

The Zacks Consensus Estimate for AMT’s 2025 FFO per share has moved 2 cents northward to $10.55 over the past week.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include

Stock #1: A Disruptive Force with Notable Growth and Resilience

Stock #2: Bullish Signs Signaling to Buy the Dip

Stock #3: One of the Most Compelling Investments in the Market

Stock #4: Leader In a Red-Hot Industry Poised for Growth

Stock #5: Modern Omni-Channel Platform Coiled to Spring

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.

Download Atomic Opportunity: Nuclear Energy's Comeback free today.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


 
American Tower Corporation (AMT): Free Stock Analysis Report
 
Ventas, Inc. (VTR): Free Stock Analysis Report
 
SBA Communications Corporation (SBAC): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.
Risk Disclosure: The content of this page is not an investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial circumstances. All investments involve risk and the past performance of securities, or financial products does not guarantee future results or returns. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against loss, in a down market. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing. For more details, please refer to risk disclosure.
During the campaign period, US stocks, US stocks short selling, US stock options, Hong Kong stocks, and A-shares trading will maintain at $0 commission, and no subscription/redemption fees for mutual fund transactions. $0 fee offer has a time limit, until further notice. For more information, please visit:  https://www.webull.hk/pricing
Webull Securities Limited is licensed with the Securities and Futures Commission of Hong Kong (CE No. BNG700) for carrying out Type 1 License for Dealing in Securities, Type 2 License for Dealing in Futures Contracts and Type 4 License for Advising on Securities.
Language

English

©2025 Webull Securities Limited. All rights reserved.