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National Storage (NSA) Soars to 52-Week High, Time to Cash Out?

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Shares of National Storage Affiliates Trust (NSA) have been strong performers lately, with the stock up 9.5% over the past month. The stock hit a new 52-week high of $67.88 in the previous session. National Storage Affiliates Trust has gained 88.4% since the start of the year compared to the 23.6% move for the Zacks Finance sector and the 32.7% return for the Zacks REIT and Equity Trust - Other industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 2, 2021, National Storage reported EPS of $0.26 versus consensus estimate of $0.56.

For the current fiscal year, National Storage is expected to post earnings of $2.22 per share on $570.62 million in revenues. This represents a 29.82% change in EPS on a 32.02% change in revenues. For the next fiscal year, the company is expected to earn $2.63 per share on $701.05 million in revenues. This represents a year-over-year change of 18.47% and 22.86%, respectively.

Valuation Metrics

National Storage may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

National Storage has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 30.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 28X versus its peer group's average of 17.1X. Additionally, the stock has a PEG ratio of 2.41. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, National Storage currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if National Storage passes the test. Thus, it seems as though National Storage shares could still be poised for more gains ahead.

How Does National Storage Stack Up to the Competition?

Shares of National Storage have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Bridge Investment Group Holdings (BRDG), CyrusOne (CONE), and CBRE Group (CBRE), all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.

The Zacks Industry Rank is in the top 42% of all the industries we have in our universe, so it looks like there are some nice tailwinds for National Storage, even beyond its own solid fundamental situation.

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National Storage Affiliates Trust (NSA) : Free Stock Analysis Report
CyrusOne Inc (CONE) : Free Stock Analysis Report
CBRE Group, Inc. (CBRE) : Free Stock Analysis Report
Bridge Investment Group Holdings Inc. (BRDG) : Free Stock Analysis Report
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