Summary: Citizens has held its Market Outperform recommendation and $40.00 price target on CareTrust REIT, noting the REIT’s rapid asset accumulation, outsized revenue growth, and a 2026 Normalized FAD per share guidance range of $1.90 to $1.95 that came in modestly below analyst expectations. The share price sits near its 52-week high after substantial acquisition activity and notable top-line expansion.
CareTrust REIT is trading at $41.12, close to its 52-week peak of $41.36, and has returned 65.06% over the past 12 months. Citizens continues to endorse initiating or adding to positions in the stock, while identifying the primary investment risk as the company’s ability to sustain the elevated growth rates it achieved in 2024 and 2025.
The company set 2026 guidance for Normalized FAD per share in a range of $1.90 to $1.95, a projection that was modestly below what analysts had been expecting. During 2025 CareTrust closed $1.8 billion of acquisitions at an 8.6% yield, increasing its gross asset value by 50% in the period. Company figures indicate revenue expanded by 60.79% over the last twelve months, a pace that underpins analyst forecasts for continued sales growth in the near term.
Operationally, CareTrust completed its first merger and acquisition transaction through the purchase of CareREIT in the UK and moved into the SHOP/RIDEA market in 2025. The firm disclosed an additional $214 million closed year-to-date in 2026 and reported a current acquisition pipeline totaling $500 million. Across 2024 and 2025, CareTrust net acquired approximately $3 billion of assets, scaling its platform to accommodate increased SHOP investments, expansion in the UK, and further growth in its core skilled nursing facility portfolio.
On balance-sheet metrics, the company operates with what has been characterized as a moderate level of leverage, reporting a debt-to-equity ratio of 0.22. An overall financial health assessment has been described as "GREAT." CareTrust trades at a price-to-earnings ratio of 26.14 and offers a 3.26% dividend yield; it has increased its dividend for 10 consecutive years.
Citizens’ recommendation emphasizes the stock’s attractiveness on a risk-reward basis, but cautions that maintaining the growth momentum observed in 2024 and 2025 is the principal risk to the thesis. The analyst view remains constructive, reflected in the sustained Market Outperform rating and the $40.00 price target.
In its latest reported quarter, CareTrust posted mixed results. Fourth-quarter 2025 earnings per share were $0.21, below the consensus estimate of $0.36, representing a 41.67% negative surprise. Revenue for the quarter was $134.86 million, exceeding the consensus revenue estimate of $110.62 million and marking a 21.91% positive surprise. These results illustrate that while the firm generated revenue above expectations, earnings per share fell short of estimates for the period.
Investors assessing CareTrust will weigh the company’s rapid asset growth, expanding geographic and product exposure, and dividend track record against the risk that earnings and FAD growth may not sustain prior rates. Citizens continues to recommend accumulation by new and existing investors, subject to the risk that recent growth trends could moderate.
Related market context: The developments outlined above provide an overview of CareTrust’s recent financial performance, acquisition strategy, guidance, and the perspective of a covering analyst firm. Market participants may use these data points when considering valuation, income yield, and balance-sheet resilience.