Let’s talk about the popular Realty Income Corporation (NYSE:O). The company’s shares saw its share price hover around a small range of $53.44 to $57.8 over the last few weeks. But is this actually reflective of the share value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Realty Income’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Realty Income
Is Realty Income still cheap?Good news, investors! Realty Income is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $79.51, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Realty Income’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 does the future of Realty Income look like?Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Realty Income’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since Realty Income is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic 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 Realty Income for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy Realty Income. 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 Realty Income. You can find everything you need to know about Realty Income in the latest infographic research report. If you are no longer interested in Realty Income, you can use our free platform to see my list of over 50 other stocks with a high growth potential.