CareTrust REIT: This Overlooked REIT's Hot Streak Continues, But The Bargain Is Gone (Rating Downgrade)

CareTrust REIT is downgraded from buy to hold as its valuation appears stretched despite continued operational outperformance. CTRE delivered double-digit FFO and revenue growth robust acquisition activity and maintains a strong balance sheet with low leverage and high liquidity. Management guides for 9.4% FFO and FAD growth in 2026, with further upside possible if M&A accelerates in a lower-rate environment.