Public Storage (PSA) shares are trading at lower $219.13 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $224.25.
To add more color to this target, the company’s high over the last year is $240.75 and the low is $155.37. Over the last 52 weeks, PSA is up 4.84% while the S&P 500 is up 14.95%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, PSA reported a profit of $353.57 million. Public Storage also saw revenues increase to $730.66 million. In addition, PSA has free cash flow of $1.26 billion as of 09-2020. The company’s EBITDA came in at $491.91 million which compares well with its peers.
PSA booked profit margins of 39.40%, its Return on Equity (ROE) is 23.10%, and its Return on Assets is 9.70%. All told, it is clear that, PSA needs to be on your watchlist.
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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. PSA has a short ratio of 3.62 and outstanding shares of 174.50M.
PSA has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.81 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 6.49. Investors should also keep an eye on sector updates as PSA has historically followed its peers on positive news.
All told, Public Storage PSA has strung together solid data and demonstrated underlying fundamentals. At its current valuation, PSA 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.
Public Storage PSA is now commanding a market cap of 39.19B and a float of 151.60M. PSA 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 PSA 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 PSA, either long or short, and we have not been compensated for this article.