Hold-Rated Dividend Stocks In The Top 3: ACC, CWH, PM
CommonWealth REIT (NYSE: CWH) shares currently have a dividend yield of 4.20%. CommonWealth REIT is a real estate investment trust launched and managed by Reit Management & Research LLC. The fund invests in the real estate markets of the United States. It seeks to invest in office buildings, industrial buildings, and leased industrial land. The company has a P/E ratio of 62.21. The average volume for CommonWealth REIT has been 949,200 shares per day over the past 30 days. CommonWealth REIT has a market cap of $2.8 billion and is part of the real estate industry. Shares are up 47.9% year-to-date as of the close of trading on Wednesday. TheStreet Ratings rates CommonWealth REIT as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and feeble growth in the company's earnings per share. Highlights from the ratings report include:
- Net operating cash flow has increased to $52.96 million or 11.00% when compared to the same quarter last year. In addition, COMMONWEALTH REIT has also modestly surpassed the industry average cash flow growth rate of 8.44%.
- Compared to its closing price of one year ago, CWH's share price has jumped by 59.46%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- CWH, with its decline in revenue, underperformed when compared the industry average of 9.5%. Since the same quarter one year prior, revenues slightly dropped by 7.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- 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 1327.8% when compared to the same quarter one year ago, falling from $17.62 million to -$216.32 million.
- The gross profit margin for COMMONWEALTH REIT is rather low; currently it is at 19.32%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -101.81% is significantly below that of the industry average.
- You can view the full CommonWealth REIT Ratings Report.
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