Is It Too Late To Buy Easterly Government Properties Inc (DEA)?
Easterly Government Properties Inc (NYSE:DEA), a reits company based in United States, saw its share price hover around a small range of $19.82 to $21.27 over the last few weeks. But is this actually reflective of the share value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at DEA’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Easterly Government Properties
Is DEA still cheap?
Good news, investors! DEA is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $29.75, but it is currently trading at $20.99 on the share market, meaning that there is still an opportunity to buy now. DEA’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 DEA 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 DEA future expectations. With profit expected to more than double over the next couple of years, the future seems bright for DEA. 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 DEA is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic 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 DEA for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DEA. 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 Easterly Government Properties. You can find everything you need to know about DEA in the latest infographic research report. If you are no longer interested in Easterly Government Properties, 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.
