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Is Brandywine Realty Trust (BDN) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Brandywine Realty Trust (BDN - Free Report) . BDN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors will also notice that BDN has a PEG ratio of 1.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BDN's PEG compares to its industry's average PEG of 2.17. Over the past 52 weeks, BDN's PEG has been as high as 2.44 and as low as 1.15, with a median of 1.79.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BDN has a P/S ratio of 1.6. This compares to its industry's average P/S of 3.49.

Finally, we should also recognize that BDN has a P/CF ratio of 3.67. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BDN's current P/CF looks attractive when compared to its industry's average P/CF of 12.98. BDN's P/CF has been as high as 7.32 and as low as 2.60, with a median of 4.48, all within the past year.

Clipper Realty (CLPR - Free Report) may be another strong REIT and Equity Trust - Other stock to add to your shortlist. CLPR is a # 2 (Buy) stock with a Value grade of A.

Clipper Realty sports a P/B ratio of 4.77 as well; this compares to its industry's price-to-book ratio of 1.59. In the past 52 weeks, CLPR's P/B has been as high as 5.49, as low as 2.22, with a median of 2.94.

Value investors will likely look at more than just these metrics, but the above data helps show that Brandywine Realty Trust and Clipper Realty are likely undervalued currently. And when considering the strength of its earnings outlook, BDN and CLPR sticks out as one of the market's strongest value stocks.


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