Is Brandywine Realty Trust (BDN) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Brandywine Realty Trust (BDN). BDN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We also note that BDN holds a PEG ratio of 1.53. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BDN's PEG compares to its industry's average PEG of 2.16. Within the past year, BDN's PEG has been as high as 2.60 and as low as 1.15, with a median of 1.89.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BDN has a P/S ratio of 1.56. This compares to its industry's average P/S of 3.8.
Another great REIT and Equity Trust - Other stock you could consider is Empire State Realty Trust (ESRT), which is a # 2 (Buy) stock with a Value Score of A.
Empire State Realty Trust is trading at a forward earnings multiple of 9.15 at the moment, with a PEG ratio of 3.28. This compares to its industry's average P/E of 14.64 and average PEG ratio of 2.16.
Over the last 12 months, ESRT's P/E has been as high as 10.36, as low as 6.42, with a median of 8.37, and its PEG ratio has been as high as 3.28, as low as 0.85, with a median of 1.08.
Additionally, Empire State Realty Trust has a P/B ratio of 0.76 while its industry's price-to-book ratio sits at 1.69. For ESRT, this valuation metric has been as high as 0.86, as low as 0.53, with a median of 0.69 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Brandywine Realty Trust and Empire State Realty Trust are likely undervalued currently. And when considering the strength of its earnings outlook, BDN and ESRT sticks out as one of the market's strongest value stocks.
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Brandywine Realty Trust (BDN) : Free Stock Analysis Report
Empire State Realty Trust, Inc. (ESRT) : Free Stock Analysis Report
