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At $102.2, Is It Time To Buy Mid-America Apartment Communities Inc (MAA)?

Today we’re going to take a look at the well-established Mid-America Apartment Communities Inc (NYSE:MAA). The company’s stock maintained its current share price over the past couple of month on the NYSE, with a relatively tight range of $99.72 to $109.11. However, does this price actually reflect the true value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at MAA’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Mid-America Apartment Communities

What is MAA worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 4% above my intrinsic value, which means if you buy MAA today, you’d be paying a relatively fair price for it. And if you believe that MAA is really worth $98.29, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, it seems like MAA’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because MAA’s stock is less volatile than the wider market given its low beta.

What does the future of MAA look like?

NYSE:MAA Future Profit Nov 17th 17
NYSE:MAA Future Profit Nov 17th 17

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 27.38% over the next couple of years, the future seems bright for MAA. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? MAA’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at MAA? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on MAA, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for MAA, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Mid-America Apartment Communities. You can find everything you need to know about MAA in the latest infographic research report. If you are no longer interested in Mid-America Apartment Communities, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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