Back to top

Image: Bigstock

Preferred Apartment Communities (APTS) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Preferred Apartment Communities closed at $16.68 in the latest trading session, marking a +1.34% move from the prior day. This change lagged the S&P 500's 1.89% gain on the day. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 0.73%.

Coming into today, shares of the real estate investment trust had lost 8.86% in the past month. In that same time, the Finance sector lost 2.25%, while the S&P 500 lost 7.36%.

Wall Street will be looking for positivity from Preferred Apartment Communities as it approaches its next earnings report date. In that report, analysts expect Preferred Apartment Communities to post earnings of $0.23 per share. This would mark a year-over-year decline of 25.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $102.49 million, down 15.38% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Preferred Apartment Communities. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Preferred Apartment Communities is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Preferred Apartment Communities is currently trading at a Forward P/E ratio of 15.98. For comparison, its industry has an average Forward P/E of 23.62, which means Preferred Apartment Communities is trading at a discount to the group.

It is also worth noting that APTS currently has a PEG ratio of 2.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The REIT and Equity Trust - Residential industry currently had an average PEG ratio of 4.16 as of yesterday's close.

The REIT and Equity Trust - Residential industry is part of the Finance sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Published in