What Is Bluerock Residential Growth REIT Inc’s (BRG) Share Price Doing?
Bluerock Residential Growth REIT Inc (AMEX:BRG), a equity real estate investment trusts (reits) company based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the AMEX. Less covered, small-stocks like BRG sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could BRG still be trading at a low price relative to its actual value? Today I will analyse the most recent data on BRG’s outlook and valuation to see if the opportunity still exists. View our latest analysis for Bluerock Residential Growth REIT
What's the opportunity in BRG?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 1% above my intrinsic value, which means if you buy BRG today, you’d be paying a relatively reasonable price for it. And if you believe that BRG is really worth $11.31, there’s only an insignificant downside when the price falls to its real value. Furthermore, it seems like BRG’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because BRG’s stock is less volatile than the wider market given its low beta.
Can we expect growth from BRG?
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. 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 BRG future expectations. Though in the case of BRG, it is expected to deliver a highly negative earnings growth in the upcoming, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
Are you a shareholder? BRG seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on BRG, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on BRG for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, 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 gel your views on BRG 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 Bluerock Residential Growth REIT. You can find everything you need to know about BRG in the latest infographic research report. If you are no longer interested in Bluerock Residential Growth REIT, 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.
