STAG Industrial (STAG) Valuation Check After Strong Year-to-Date Gains and Recent Pullback
Why STAG Industrial Stock Is Drawing Fresh Attention
STAG Industrial (STAG) has quietly outperformed many REIT peers this year, with the stock up around 14% year to date and nearly 10% over the past year, even after a recent pullback.
See our latest analysis for STAG Industrial.
That steady climb has come even as the latest 1 day and 1 month share price returns are slightly negative, suggesting some profit taking after a strong year to date share price return and solid multi year total shareholder returns.
If STAG’s mix of income and growth has your attention, this could be a good moment to see what else fits that profile and explore fast growing stocks with high insider ownership.
With shares sitting about 9 percent below analyst targets and nearly 30 percent below some intrinsic value estimates, is STAG Industrial quietly undervalued right now, or is the market already pricing in its next leg of growth?
Most Popular Narrative Narrative: 8.7% Undervalued
Compared with the last close at $37.68, the most followed narrative points to a fair value closer to the low 40 dollar range, built on detailed forecasts for growth, margins, and cash flows.
The analysts have a consensus price target of $38.545 for STAG Industrial based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $47.0, and the most bearish reporting a price target of just $35.0.
Curious why a business with modest growth expectations still screens as undervalued? The narrative leans on specific revenue trends, shifting margins, and a forward earnings multiple more often reserved for faster growing sectors. Want to see which assumptions really push that fair value into the 40s and how much profit compression is already baked in?
Result: Fair Value of $41.25 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, that upside depends on resilient tenant demand. A sharper e commerce slowdown or faster consolidation into mega centers could pressure occupancy and leasing spreads.
Find out about the key risks to this STAG Industrial narrative.
Build Your Own STAG Industrial Narrative
If you see the story differently, or want to dig into the numbers on your own, you can build a custom view in a few minutes, starting with Do it your way.
A great starting point for your STAG Industrial research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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