Q: Hello ,
It appears from various questions and answers, well's fundamentals are good. If the market does not seem to like it much, in your experience, is it best to move on. Unless there is a takeover, do you see a potential of Well surging. Last report as outlined was good and it did well but now retracing.. thanks for your assistance.
It appears from various questions and answers, well's fundamentals are good. If the market does not seem to like it much, in your experience, is it best to move on. Unless there is a takeover, do you see a potential of Well surging. Last report as outlined was good and it did well but now retracing.. thanks for your assistance.
5i Research Answer:
WELL's fundamentals have been improving, and it is now EBIT positive and generating solid free cash flows. It trades at a fairly cheap 13X forward earnings for a company that is growing its top line around 30%, and becoming profitable. It has been consolidating since its big run in early 2023. We think that if it continues to post strong results, with a growing profit margin, that eventually its P/E will contract to highly attractive levels that could no longer be ignored by the market. WELL can move quickly, and we would prefer to be positioned for any potential big move in the name.