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Is There Now An Opportunity In Urban Edge Properties (NYSE:UE)?

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Urban Edge Properties (NYSE:UE), which is in the reits business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of $18.81 and falling to the lows of $16.5. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Urban Edge Properties's current trading price of $16.74 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 Urban Edge Properties’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Urban Edge Properties

Is Urban Edge Properties still cheap?

Great news for investors – Urban Edge Properties is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $21.41, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Urban Edge Properties’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What kind of growth will Urban Edge Properties generate?

NYSE:UE Past and Future Earnings, July 26th 2019
NYSE:UE Past and Future Earnings, July 26th 2019

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. Though in the case of Urban Edge Properties, it is expected to deliver a highly negative earnings growth in the next few years, 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? Although UE is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. I recommend you think about whether you want to increase your portfolio exposure to UE, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on UE for a while, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Urban Edge Properties. You can find everything you need to know about Urban Edge Properties in the latest infographic research report. If you are no longer interested in Urban Edge Properties, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.