Is It Time To Buy Lexington Realty Trust (LXP)?
Lexington Realty Trust (NYSE:LXP), a real estate company based in United States, See our latest analysis for LXP
Is LXP still cheap?
Great news for investors – LXP is still trading at a fairly cheap price. My valuation model shows that the stock’s value should be $13.85 but it is currently trading at $9.93 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, LXP’s share price is 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 LXP’s stock is less volatile than the wider market given its low beta.
What kind of growth will LXP generate?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio.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. With profit expected to grow by 97.46% over the next couple of years, the future seems bright for LXP. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since LXP is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on LXP for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LXP. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Lexington Realty Trust. You can find everything you need to know about LXP in the latest infographic research report. If you are no longer interested in Lexington 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.
