Shares of Healthpeak Properties (PEAK) is Ready to Breakout!

Since July, shares of Healthpeak Properties (PEAK) have been trending sideways and a key resistance level has formed…

Healthpeak Properties (PEAK) is a real estate investment trust, which owns a diversified healthcare portfolio of over 650 in-place properties spread across senior housing, medical office, life science, hospital, and skilled nursing/post-acute care.

The company’s life science and medical office segments are seeing strong leasing, primarily driven by higher demand for biotech research and outpatient procedures that have resumed across the country. PEAK also has a strong senior housing portfolio in wealthy markets, so it should benefit from rising healthcare spending amid an aging population.

PEAK had $731 million in cash on hand at the end of the last quarter, which is 458% higher than last year. Its net debt was down slightly from $6.4 billion to $6.3 billion and its current ratio is 1.8, indicating it has plenty of cash to handle any short-term liabilities.

The company had solid revenue growth last year, up 17.6%, but earnings were down 63.8% year over year, and are forecasted to plunge 71.7% next year. The stock also has a pretty high valuation with a P/E of 45.9 and a Price to Sales ratio of 6.5.

In terms of momentum, the stock is up over the last week and month, but is negative year to date and over the last year.

Take a look at the 1-year chart of PEAK below with my added notations…

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