At $34.74, Is It Time To Buy Hudson Pacific Properties Inc (HPP)?
Hudson Pacific Properties Inc (NYSE:HPP), 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 $35.68 and falling to the lows of $31.81. 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 HPP’s current trading price of $34.74 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at HPP’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 Hudson Pacific Properties
What’s the opportunity in HPP?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 17% above my intrinsic value, which means if you buy HPP today, you’d be paying a relatively reasonable price for it. And if you believe that HPP is really worth $29.75, there’s only an insignificant downside when the price falls to its real value. In addition to this, it seems like HPP’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 HPP’s stock is less volatile than the wider market given its low beta.
What does the future of HPP look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. HPP’s earnings over the next few years are expected to increase by 23.54%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? It seems like the market has already priced in HPP’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at HPP? 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 HPP, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for HPP, which means it’s worth further examining 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 Hudson Pacific Properties. You can find everything you need to know about HPP in the latest infographic research report. If you are no longer interested in Hudson Pacific 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.
