Should You Think About Buying Industrial Logistics Properties Trust (NASDAQ:ILPT) Now?
Industrial Logistics Properties Trust (NASDAQ:ILPT), which is in the reits business, and is based in United States, saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$22.59 and falling to the lows of US$20.29. 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 Industrial Logistics Properties Trust's current trading price of US$22.15 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Industrial Logistics Properties Trust’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Industrial Logistics Properties Trust
What's the opportunity in Industrial Logistics Properties Trust?
Great news for investors – Industrial Logistics Properties Trust is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $33.86, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Industrial Logistics Properties Trust’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What does the future of Industrial Logistics Properties Trust 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. However, with a negative profit growth of -7.1% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Industrial Logistics Properties Trust. This certainty tips the risk-return scale towards higher risk.
What this means for you:
Are you a shareholder? Although ILPT is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. I recommend you think about whether you want to increase your portfolio exposure to ILPT, 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 tabs on ILPT for some time, 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 Industrial Logistics Properties Trust. You can find everything you need to know about Industrial Logistics Properties Trust in the latest infographic research report. If you are no longer interested in Industrial Logistics Properties Trust, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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.
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