
Please try another search
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Cedar Realty Trust, Inc. (NYSE:CDR) stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Cedar Realty Trust has a trailing twelve months PE ratio of 5.09, as you can see in the chart below:
Meanwhile, the company’s recent earnings estimates have been disappointing. The current quarter has seen one estimate go lower in the past sixty days compared to none higher, while the full year estimate has seen a similar trend in the same time period.
This has had a noticeable impact on the consensus estimate, as the current quarter consensus estimate has fallen 8.3% in the past two months, while the full year estimate has declined 4.3%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
Despite this bearish trend, the stock has a Zacks Rank #2 (Buy) on the back of its strong value metrics and this is why we are expecting above-average performance from the company in the near-term.
Bottom Line
Cedar Realty Trust is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Boasting a good industry rank (top 37% out of more than 250 industries) and a strong Zacks Rank, the company deserves attention right now. However, over the past one year, the sector has clearly underperformed the broader market, as you can see below:
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft (NASDAQ:MSFT) stock in the early days of personal computers… or Motorola (NYSE:MSI) after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>
Home improvement retailers Lowe’s (NYSE:LOW) and Home Depot (NYSE:HD) turned a corner, and their Q4 2024 earnings reports confirmed it. The corner is a return to comparable store...
One of our old flames, a former Contrarian Income Portfolio holding, has pulled back sharply in recent weeks. Time to buy the dip in this 4.3% dividend? Let’s discuss. Kinder...
Emini S&P March collapsed on Thursday from strong resistance at 6010/6015The low and high for the last session were 5873 - 6014.(To compare the spread to the contract you...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.