Agree Realty Corporation (NYSE:ADC), a reits company based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. 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? Today I will analyse the most recent data on Agree Realty’s outlook and valuation to see if the opportunity still exists. Check out our latest analysis for Agree Realty
Is Agree Realty still cheap?Good news, investors! Agree Realty is still a bargain right now. According to my valuation, the intrinsic value for the stock is $75, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Agree Realty’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.
Can we expect growth from Agree Realty?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. Though in the case of Agree Realty, it is expected to deliver a relatively unexciting earnings growth of 8.82%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since ADC is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. 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 ADC for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ADC. 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 Agree Realty. You can find everything you need to know about Agree Realty in the latest infographic research report. If you are no longer interested in Agree Realty, you can use our free platform to see my list of over 50 other stocks with a high growth potential.