Have Investors Priced In Public Storage’s (NYSE:PSA) Growth?
Today we’re going to take a look at the well-established Public Storage (NYSE:PSA). The company’s stock saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $209.24 and falling to the lows of $180.49. 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 Public Storage’s current trading price of $196.61 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Public Storage’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 Public Storage
What’s the opportunity in Public Storage?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 15% above my intrinsic value, which means if you buy Public Storage today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $171.04, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Public Storage’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.
What does the future of Public Storage look like?
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. Public Storage’s earnings over the next few years are expected to increase by 20.07%, 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 PSA’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 the stock? 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 an eye on PSA, 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 the company, 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 Public Storage. You can find everything you need to know about Public Storage in the latest infographic research report. If you are no longer interested in Public Storage, 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.
