Is Now The Time To Look At Buying Artis Real Estate Investment Trust (TSE:AX.UN)? - Yahoo Finance

Artis Real Estate Investment Trust (TSE:AX.UN), which is in the reits business, and is based in Canada, saw a significant share price rise of over 20% in the past couple of months on the TSX. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at Artis Real Estate Investment Trust’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Artis Real Estate Investment Trust

What is Artis Real Estate Investment Trust worth?

Great news for investors – Artis Real Estate Investment Trust is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is CA$13.27, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Artis Real Estate Investment Trust’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What kind of growth will Artis Real Estate Investment Trust generate?

TSX:AX.UN Past and Future Earnings April 17th 2020

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Artis Real Estate Investment Trust, it is expected to deliver a negative revenue growth of -6.8% over the next couple of years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What this means for you:

Are you a shareholder? Although AX.UN is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. I recommend you think about whether you want to increase your portfolio exposure to AX.UN, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on AX.UN for a while, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Artis Real Estate Investment Trust. You can find everything you need to know about Artis Real Estate Investment Trust in the latest infographic research report. If you are no longer interested in Artis Real Estate Investment Trust, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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