At $21.09, Is Urstadt Biddle Properties Inc (NYSE:UBA) A Buy?
Urstadt Biddle Properties Inc (NYSE:UBA), a reits company based in United States, saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $23.75 and falling to the lows of $21.01. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Urstadt Biddle Properties’s current trading price of $21.09 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Urstadt Biddle Properties’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Urstadt Biddle Properties
Is Urstadt Biddle Properties still cheap?
According to my valuation model, Urstadt Biddle Properties seems to be fairly priced at around 13% below my intrinsic value, which means if you buy Urstadt Biddle Properties today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $24.37, then there’s not much of an upside to gain from mispricing. Furthermore, Urstadt Biddle Properties’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.
Can we expect growth from Urstadt Biddle Properties?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. However, with a negative profit growth of -15.50% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Urstadt Biddle Properties. This certainty tips the risk-return scale towards higher risk.
What this means for you:
Are you a shareholder? Currently, Urstadt Biddle Properties appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on Urstadt Biddle Properties for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on Urstadt Biddle Properties should the price fluctuate below its true value.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Urstadt Biddle Properties. You can find everything you need to know about Urstadt Biddle Properties in the latest infographic research report. If you are no longer interested in Urstadt Biddle Properties, 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.
