What To Hold: Top 3 Hold-Rated Dividend Stocks: HGT, GOOD, LRE
Gladstone Commercial Corporation (NASDAQ: GOOD) shares currently have a dividend yield of 8.50%. Gladstone Commercial Corporation operates as a real estate investment trust (REIT) in the United States. It engages in investing in and owning net leased industrial and commercial real properties, and making long-term industrial and commercial mortgage loans. The average volume for Gladstone Commercial Corporation has been 74,400 shares per day over the past 30 days. Gladstone Commercial Corporation has a market cap of $252.7 million and is part of the real estate industry. Shares are down 1.5% year-to-date as of the close of trading on Tuesday. TheStreet Ratings rates Gladstone Commercial Corporation as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.5%. Since the same quarter one year prior, revenues rose by 24.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has slightly increased to $8.03 million or 2.16% when compared to the same quarter last year. Despite an increase in cash flow, GLADSTONE COMMERCIAL CORP's average is still marginally south of the industry average growth rate of 8.44%.
- 46.64% is the gross profit margin for GLADSTONE COMMERCIAL CORP which we consider to be strong. Regardless of GOOD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GOOD's net profit margin of 1.92% is significantly lower than the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 68.6% when compared to the same quarter one year ago, falling from $0.99 million to $0.31 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, GLADSTONE COMMERCIAL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Gladstone Commercial Corporation Ratings Report.
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