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Bear of the Day: Kimco Realty (KIM)

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Today’s Bear of the Day lies at the epicenter of two strong trends which are bearish for the company. Those trends are interest rates on the rise and the death of the retail. While the bad news for retail may be overblown, there’s no question that malls in America are going to have to adapt to get back to the levels of success they’ve seen in the past. Interest rates certainly will rise, putting pressure on REITs and other income-producing equities. Today’s Bear of the Day is a REIT which operates malls.

Kimco Realty Corp.(KIM - Free Report) is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is one of North America's largest publicly traded owners and operators of open-air shopping centers. As of December 31, 2017, the company owned interests in 492 U.S. shopping centers comprising 83 million square feet of leasable space primarily concentrated in the top major metropolitan markets. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for 60 years.

The stock is a Zacks Rank #5 (Strong Sell) because of the bearish earnings estimate revisions of analysts. Over the last sixty days, eleven analysts have dropped their current year EPS estimates while eight have done so for next year’s numbers. The current year consensus has dropped from $1.54 to $1.44 over the last ninety days while next year’s consensus has come down from $1.60 to $1.49.

The stock has been under pressure since dipping below its 200-day moving average in October of last year with the price near $29. Since then shares have lost half of their value, coming all the way down to under $15.

The REIT industry is in the Bottom 6% of our Zacks Industry Rank. Most of the industry is a Zacks Rank #3 (Hold) including American Assets Trust (AAT - Free Report) and Equinix (EQIX - Free Report) . The only Zacks Rank #2 (Buy) is Urstadt Biddle .

Zacks Editor-in-Chief Goes "All In" on This Stock

Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.

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Equinix, Inc. (EQIX) - free report >>

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