Weingarten Realty Investors (NYSE:WRI), 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 $32.87 at one point, and dropping to the lows of $26.48. 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 Weingarten Realty Investors’s current trading price of $27.77 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Weingarten Realty Investors’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 Weingarten Realty Investors
What is Weingarten Realty Investors worth?
According to my valuation model, Weingarten Realty Investors seems to be fairly priced at around 10.17% below my intrinsic value, which means if you buy Weingarten Realty Investors today, you’d be paying a fair price for it. And if you believe the company’s true value is $30.91, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, it seems like Weingarten Realty Investors’s share price is quite stable, which means there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.
Can we expect growth from Weingarten Realty Investors?
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 an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Weingarten Realty Investors, at least in the near future.
What this means for you:
Are you a shareholder? WRI seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on WRI for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on WRI should the price fluctuate below its true value.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Weingarten Realty Investors. You can find everything you need to know about Weingarten Realty Investors in the latest infographic research report. If you are no longer interested in Weingarten Realty Investors, 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.