Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Shares of HCP Inc. (HCP - Analyst Report) touched a 52-week high of $49.91 on Thursday, Mar 28, 2013, as it gained momentum from better-than-expected fourth-quarter 2012 results. The closing price of this healthcare real estate investment trust (REIT) on Mar 28, 2013 was $49.86, representing a solid year-to-date return of 10.7%. The average trading volume over the last 3 months was 2.87 million shares.

Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock has plenty of upside left given its strong estimate revisions over the last 30 days.
 
Growth Drivers


HCP reported improved fourth-quarter 2012 results with core FFO and revenues beating the Zacks Consensus Estimate. HCP’s diversified portfolio, which provides a steady source of income, drove the quarterly results. Also, the closure of the Senior Housing portfolio acquisition during the fourth quarter boosted the company’s portfolio diversification activity. Alongside, the dividend hike during the quarter boosted investors’ confidence in the stock.

On Feb 12, HCP reported fourth-quarter 2012 adjusted FFO (funds from operations) per share of 72 cents, a penny ahead of the Zacks Consensus Estimate and a nickel above the prior-year quarter figure. The results were driven by better-than-expected growth in revenues. For full year 2012, adjusted FFO came in at $2.78 per share, a cent above the Zacks Consensus Estimate of $2.77 per share and exceeded the prior-year figure of $2.69 per share.

Notably, HCP has now delivered positive earnings surprises in 4 straight quarters with an average beat of 1.44%.

Estimate Revisions

Over the last 30 days, the Zacks Consensus Estimate for full-year 2013 has remained unchanged at $2.97 per share. On the other hand, the Zacks Consensus Estimate for full-year 2014 has moved up marginally to $3.15 per share.

On Mar 28, a number of REITs crafted 52-week highs. This includes Plum Creek Timber Co. Inc. (PCL - Analyst Report), Health Care REIT, Inc. (HCN - Analyst Report) and The Macerich Company (MAC - Analyst Report).

Note: Funds from operations, a widely accepted and reported measure of REITs performance, are derived by adding depreciation, amortization and other non-cash expenses to net income.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%