HCP stock: buy or sell?

HCP stock price: $37.39 1.05% At close on October 18th, 2019

Updated on:
October 18th, 2019

5

After climbing to all-time highs several times in past weeks, HCP raised 1.05% to $37.39. October/18 was the 5th green session in a row, soaring 2.85%.

HCP, Inc. is a fully integrated real estate investment trust (REIT) that invests primarily in real estate serving the healthcare industry in the United States.

Should I buy HCP stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, 2 buy setups work for HCP stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is HCP stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we detected 10 ratings published for HCP stock in the last month.

The general sentiment of these ratings is bullish for HCP stock, with 8 positive ratings.
Is HCP a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-3Stifel Nicolausn/aBuy
2019-9-3Barclaysn/aOverweight
2019-9-17Morgan Stanleyn/aEqual Weight
2019-9-10JPMorgan Chase & Co.n/aNeutral
2019-9-10ArgusHoldBuy
2019-8-1Stifel Nicolausn/aBuy
2019-7-1KeyCorpn/aOverweight
2019-6-13Raymond JamesMarket PerformOutperform
2019-1-9BMO Capital MarketsMarket PerformOutperform
2019-1-7Robert W. BairdNeutralOutperform

HCP stock analysis

Daily outlook

After reaching all time highs on October 18th, HCP raised 1.05% to $37.39.

HCP raised 1.05% to $37.39 after reaching all time highs on Oct 18th. HCP shows a sign of strength in the short-term after finally breaking out above $36.80 on October 9th and marking a new rising bottom. On October 18th, HCP hit a new all time high, pushing higher than on Thursday tops. Check different trading setups that use ATHs as triggers. On August HCP price bounced up over the SMA of 50 days demonstrating to be a significant support for this stock.

HCP stock chart (daily)

Weekly outlook

HCP shares peaked new all time highs back again this week, marking to $37.52. Shares closed at $37.39 and soared 2.86% during the week. Early September HCP plummed a bloodcurdling -5.45% in just one week.

Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $36.07 resistance. Late April HCP price bounced up over the SMA of 20 weeks that acted as support stopping new slides.

HCP stock chart (weekly)

HCP stock price history

HCP stock went public on May 23rd, 1985 with a price of $0.001. Since then, HCP stock grew a inf%, with an average of inf% per year. If you had invested right after HCP's IPO a $1,000 in HCP stock in 1985, it would worth $inf today.

1: Adjusted price after possible price splits or reverse-splits.

HCP stock historical price chart

HCP stock reached all-time highs on Oct 18th with a price of $37.52.

HCP stock price target is $35.30

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 7 price targets for HCP stock:
HCP stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-3Stifel NicolausReiterates$34.00$37.008.8%
2019-9-3BarclaysInitiatesn/a$37.00-
2019-9-17Morgan StanleyRaises Target$32.00$35.009.4%
2019-9-10JPMorgan Chase & Co.Raises Target$32.00$35.009.4%
2019-8-1Stifel NicolausRaises Target$32.00$34.006.3%
2019-7-1KeyCorpRaises Target$32.00$34.006.3%
2019-6-13Raymond JamesUpgradesn/a$35.00-
(in average)$32.40$35.309.0%
The price forecast for HCP stock is $35.30, moving in a range between $37.00 and $34.00. In average, analysts' outlook on HCP price target is positive, upgrading the forecast by a 9.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, HCP was in line with the estimates of the experts and reported an EPS of $0.43 per share. Unfortunately, reported EPS is not yet available in our database.
HCP earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.66n/a
2017-Q32017-11-020.15-0.02n/a
2017-Q42018-02-130.17-0.09n/a
2018-Q12018-05-030.460.484.3%
2018-Q22018-08-020.460.472.2%
2018-Q32018-10-310.430.442.3%
2018-Q42019-02-130.430.430.0%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw a slightly good increase of 2.54% to $1,782.01 million dollars. Instead, its profit margin (compared to sales) rocketed to 59.54%, that is $1,061.09 million.

HCP annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$2,110 M-$895 M42.4%-
2014$1,529 M-27.55%$922 M60.3%3.07%
2015$1,798 M17.63%$-559.24 M-31.1%-160.64%
2016$1,981 M10.16%$628 M31.7%-212.25%
2017$1,738 M-12.27%$414 M23.8%-34.02%
2018$1,782 M2.54%$1,061 M59.5%156.20%

Quarterly financial results

HCP posted $426.62 million in revenues for 2018-Q4, a -3.31% less compared to previous quarter. Reported quarter earnings marked $831.55 million with a profit margin of 194.92%. Profit margin climbed a 172.39% compared to previous quarter when profit margin was 22.52%. When comparing revenues to same quarter last year, HCP sales marked a neutral movement and stayed constant a 0.55%. Looking back to recent quarterly results, HCP posted 3 negative quarters in a row.
HCP quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$459 M-$19 M4.2%-
2017-Q3$429 M-6.52%$-8 M-1.8%-139.71%
2017-Q4$424 M-1.10%$-59 M-13.8%666.64%
2018-Q1$460 M8.31%$40 M8.8%-168.54%
2018-Q2$455 M-1.08%$90 M19.8%123.56%
2018-Q3$441 M-2.95%$99 M22.5%10.48%
2018-Q4$427 M-3.31%$832 M194.9%736.81%
2019-Q1$421 M-1.34%$61 M14.6%-92.61%

HCP ownership

When you are planning to invest in a company, it's worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For HCP, 0.22% of all outstanding shares are owned by its staff.

Bearish positions for HCP stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to HCP:

HCPSBRATIPTVTRWELL
Market cap$18.4 B$4.5 B$252.2 M$27.1 B$37.3 B
Total shares491.1 M189.5 M34.6 M372.6 M405.3 M
Float shares489.8 M187.3 M22.4 M371.3 M404.4 M
  - Institutional holdings (%)97.0%99.7%42.8%91.1%86.6%
  - Insider holdings (%)0.2%1.3%32.4%0.4%0.2%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

HCP summary

Friday, October 18th, 2019
Open$36.97
Close$37.39
Day range$36.90 - $37.52
Previous close$37.00
Session gain1.05%
Average true range$0.53
50d mov avg$35.22
100d mov avg$33.58
200d mov avg$31.71
Daily patternlb02c
Weekly pattern lb02c

HCP performance

To measure stock performance is always good to benchmark with competitors or related stocks. We chose Sabra Health Care, Tiptree, Ventas and Welltower as the bechmarking frame for HCP stock.
Stock3m6m12m
HCP 19.15%28.31%48.73%
SBRASabra Health Care20.81%28.98%18.39%
TIPTTiptree16.80%18.31%28.30%
VTRVentas10.06%26.21%36.65%
WELLWelltower11.99%28.44%49.50%

HCP competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for HCP. We chose 4 companies as HCP competitors as they are in the same industry or have similar market objectives.