Many stocks have been testing new highs in 2020, and one of the most notable is STORE Capital Corporation (STOR). Currently, STOR is trading at $26.58 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $25.08.
To add more color to this target, the company’s high over the last year is $40.96 and the low is $13.00. Over the last 52 weeks, STOR is down -35.11% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, STOR reported a profit of $101.78 million. STORE Capital Corporation also saw revenues increase to $177.9 million. In addition, STOR has free cash flow of -$131.45 million as of 03-2020 The company’s EBITDA came in at $159.68 million which compares well with its peers.
STOR booked profit margins of 43.90%, its Return on Equity (ROE) is 6.90%, and its Return on Assets is 3.70%. All told, it is clear that, STOR needs to be on your watchlist.
About STORE Capital Corporation
If readers are unfamiliar, STORE Capital Corporation is an internally managed net-lease real estate investment trust, or REIT, that is the leader in the acquisition, investment and management of Single Tenant Operational Real Estate, which is its target market and the inspiration for its name. STORE Capital is one of the largest and fastest growing net-lease REITs and owns a large, well-diversified portfolio that consists of investments in more than 2,500 property locations across the United States, substantially all of which are profit centers.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. STOR has a short ratio of 2.09 and outstanding shares of 243.36M.
STOR has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 4.93 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.29. Investors should also keep an eye on sector updates as STOR has historically followed its peers on positive news.
All told, STORE Capital Corporation STOR has strung together solid data and demonstrated underlying fundamentals. At its current valuation, STOR represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
STORE Capital Corporation STOR is now commanding a market cap of 6.47B and a float of 242.49M. STOR is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of STOR stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in STOR, either long or short, and we have not been compensated for this article.