Lexington Realty Trust (NYSE:LXP), a reits company based in United States, saw a decent share price growth in the teens level on the NYSE over the last few months. With many analysts covering the mid-cap 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 Lexington Realty Trust’s outlook and valuation to see if the opportunity still exists. Check out our latest analysis for Lexington Realty Trust
What’s the opportunity in Lexington Realty Trust?Great news for investors – Lexington Realty Trust is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $14.19, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Lexington Realty 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.
Can we expect growth from Lexington Realty Trust?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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to more than double over the next couple of years, the future seems bright for Lexington Realty Trust. 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 LXP is currently undervalued, it may be a great time to increase 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 LXP 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 LXP. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, 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 Lexington Realty Trust. You can find everything you need to know about Lexington Realty Trust in the latest infographic research report. If you are no longer interested in Lexington Realty Trust, you can use our free platform to see my list of over 50 other stocks with a high growth potential.