Cedar Realty Trust Inc (NYSE:CDR), a reits company based in United States, received a lot of attention from a substantial price movement on the NYSE in the over the last few months, increasing to $5.53 at one point, and dropping to the lows of $3.64. 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 Cedar Realty Trust’s current trading price of $4 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 Cedar Realty Trust’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 Cedar Realty Trust
What’s the opportunity in Cedar Realty Trust?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 8.13% below my intrinsic value, which means if you buy Cedar Realty Trust today, you’d be paying a fair price for it. And if you believe the company’s true value is $4.35, then there’s not much of an upside to gain from mispricing. Furthermore, Cedar Realty Trust’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 kind of growth will Cedar Realty Trust generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Cedar Realty Trust, it is expected to deliver a relatively unexciting top-line growth of 2.36% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What this means for you:
Are you a shareholder? It seems like the market has already priced in CDR’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on CDR, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining 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 Cedar Realty Trust. You can find everything you need to know about Cedar Realty Trust in the latest infographic research report. If you are no longer interested in Cedar Realty Trust, 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.