Is Welltower Stock Underperforming the S&P 500?

Valued at a market cap of $140.9 billion, Welltower Inc. (WELL) is a real estate investment trust (REIT) that stands as one of the world's largest healthcare infrastructure investors. The Toledo, Ohio-based company’s real estate footprint operates exclusively at the intersection of housing, hospitality, and healthcare, with a massive focus on rental housing for aging populations alongside wellness housing and outpatient medical facilities.

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and WELL fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the REIT - healthcare facilities industry. The company’s core specialty centers on its proprietary Data Science and Machine Learning platform, which powers the "Welltower Business System." This specialized technology stack uses predictive analytics to optimize micromarket site selection, aggressively drive down property operating expenses, and maximize revenue per occupied room (RevPOR) across its senior living communities, fundamentally positioning the firm as a tech-driven operator wrapped in a real estate shell.

Despite its notable strength, this healthcare REIT has dipped 9.7% from its 52-week high of $221.68, reached on May 13. Shares of WELL have declined 3.5% over the past three months, underperforming the S&P 500 Index’s ($SPX) 10.6% uptick during the same time frame. 

Moreover, on a YTD basis, shares of WELL are up 7.6%, compared to SPX’s 11% increase. Nonetheless, in the longer term, WELL has soared 31.3% over the past 52 weeks, outpacing SPX's 27.3% uptick over the same time period. 

To confirm its recent bearish trend, WELL has been trading below its 50-day moving average since late May. However, it has remained above its 200-day moving average over the past year. 

On Apr. 28, Welltower shares gained 2% after the company reported impressive Q1 2026 results. Its normalized FFO came in at $1.47 per share, marking a 23% increase from the prior-year period and exceeding analysts’ consensus estimate of $1.44. Additionally, its revenue rose 38.3% year-over-year to approximately $3.35 billion, supported by higher occupancy levels, rental rate growth, and continued expansion through acquisitions. 

Welltower has outperformed its rival, Ventas, Inc. (VTR), which gained 24.3% over the past year and 1.5% on a YTD basis. 

Despite WELL’s recent underperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of "Strong Buy” from the 20 analysts covering it, and the mean price target of $239.10 suggests a 19% premium to its current price levels.