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At US$18.24, Is Kite Realty Group Trust (NYSE:KRG) Worth Looking At Closely?

Simply Wall St

Kite Realty Group Trust (NYSE:KRG), which is in the reits business, and is based in United States, led the NYSE gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Kite Realty Group Trust’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Kite Realty Group Trust

Is Kite Realty Group Trust still cheap?

Great news for investors – Kite Realty Group Trust is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $25.90, but it is currently trading at US$18.24 on the share market, meaning that there is still an opportunity to buy now. Kite Realty Group 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 kind of growth will Kite Realty Group Trust generate?

NYSE:KRG Past and Future Earnings, December 13th 2019

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. 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. Kite Realty Group Trust’s earnings over the next few years are expected to increase by 97%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since KRG is currently undervalued, it may be a great time to accumulate more of 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 financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on KRG 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 KRG. 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 investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Kite Realty Group Trust. You can find everything you need to know about Kite Realty Group Trust in the latest infographic research report. If you are no longer interested in Kite Realty Group 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.

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. Thank you for reading.