US based Pennsylvania Real Estate Investment Trust (NYSE:PEI) received a lot of attention from a substantial price movement on the NYSE over the last few months, fluctuating from a high of US$5.96 to the lows of US$3.39. Share price volatility can always give investors an opportunity to enter into the stock at a better price, but is the current price of US$3.60 a good indicator of this small-cap’s actual value, or does this signal a buying opportunity?
Future outlook is an important aspect when you’re looking at buying a stock with long term growth in mind. Pennsylvania Real Estate Investment Trust’s earnings over the next few years are expected to increase by 51%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Based on existing shareholder activity, it seems like the market has already priced in PEI’s positive outlook, with shares trading around its fair value. For many potential investors this means they have missed an opportunity for huge growth, however the positive outlook is encouraging for the company. Picking the best time to buy in would take further due diligence of other factors such as the strength of its balance sheet, and the track record of its management team in order to take advantage of the next price drop.
Of course price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Pennsylvania Real Estate Investment Trust.
PREIT owns and operates over 22.5 million sf of retail space with a concentration in two top 10 MSAs. Since 2012, the company has driven a transformation guided by an emphasis on a high-quality portfolio, balance sheet strength, operational improvements and disciplined capital expenditures. You can start your own diligence on their site at https://www.preit.com/