The market is a pendulum that forever swings between unsustainable optimism and unjustified pessimism. Equity Lifestyle Properties, a key player in the REIT - Residential industry, has been experiencing significant volatility, prompting investors to reconsider their positions.
With a market value of $60.71, the stock is currently trading close to its median price of $60.96. The company's valuation real value stands at $67.41, suggesting potential upside. However, the accumulation distribution of 25.2K and a daily balance of power at 0.1915 indicates a level of uncertainty among investors.
Analysts have a consensus of 'Buy' on the stock, with three strong buys and nine holds. The estimated target price ranges from a low of $65.71 to a high of $80.15, with an average target price of $72.21. This suggests a potential upside from the current trading levels.
However, the stock's price action indicator stands at -0.16, and the possible downside price is $59.05, indicating potential risks. Investors need to weigh these factors against the company's expected EPS of $1.85 for the next fiscal year ending in December.
In conclusion, while Equity Lifestyle Properties stock presents potential for growth, the volatility and potential downside risk cannot be ignored. Investors should closely monitor the stock and consider their risk tolerance before making a decision. Given a 90-day investment horizon, Equity Lifestyle Properties is projected to underperform the market. The company's volatility is 1.73 times higher than its market benchmark, trading about -0.15 of its total potential returns per unit of risk. Currently, the Dow Jones Industrial is generating approximately 0.02 per unit of volatility. As many traditional traders are steering clear of diversified REITs, it's worth taking a closer look at Equity Lifestyle Properties to understand its current volatility patterns. We will assess whether the recent price volatility of Equity Lifestyle suggests a potential bounce in May.
Equity Lifestyle Properties holds approximately 27.78 million in cash, with a positive cash flow from operations of 548 million. This results in a cash-per-share (CPS) ratio of 0.15.
Main Takeaways
Given the negative Total Risk Alpha of -0.13 and a Jensen Alpha of -0.12, Equity Lifestyle Properties stock exhibits a higher volatility, which may not be suitable for risk-averse investors. However, with a Potential Upside of 1.51, those willing to tolerate the risk could see significant returns.Equity Lifestyle
financial leverage refers to using borrowed capital as a funding source to finance Equity Lifestyle Properties ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Equity Lifestyle financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Equity Lifestyle's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Equity Lifestyle's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Equity Lifestyle's total debt and its cash.
To perform a cash flow analysis of Equity Lifestyle, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Equity Lifestyle is receiving and how much cash it distributes out in a given period. The Equity Lifestyle cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Equity Lifestyle Pro price drop over the last few months could raise concerns from private investors as the firm is trading at a share price of
60.71 on
1,645,774 in volume. The company directors and management were not very successful in positioning the firm resources to exploit market volatility in
March. However, diversifying your holdings with Equity Lifestyle Properties or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.05. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
Every cloud has a silver lining, and the same could be said for Equity Lifestyle Properties stock. Despite a negative Information Ratio of -0.12 and a Skewness of -0.09, indicating a potential for risk, the company boasts a healthy Net Income of $314.21 million and a Five Year Return of 2.03%. However, the stock's Standard Deviation of 1.06 and a Probability of Bankruptcy at 33.57% suggest a high level of volatility. With a Market Capitalization of $11.84 billion and a Current Valuation of $14.79 billion, investors may want to reconsider their position, keeping in mind the company's potential upside of 1.51. In the end, the decision to hold, sell, or buy more of Equity Lifestyle Properties stock will depend on an investor's risk tolerance and investment strategy..
Equity showing indication of lower volatility
Equity Lifestyle Properties (ELS) is exhibiting signs of potentially reduced volatility, as indicated by a decrease in kurtosis to 0.65. This statistical measure's decline suggests a shift towards a normal distribution, often signaling less price volatility. Investors should closely monitor ELS as it could offer a more stable trading environment, potentially reducing risk and providing more predictable returns. ELS displays very low volatility with a skewness of -0.09 and kurtosis of 0.65. Understanding market volatility trends can help investors time the market. Using volatility indicators properly allows traders to gauge ELS's stock risk against market volatility during both bullish and bearish trends. High volatility in bear markets can directly affect ELS's stock price, causing stress for investors as they see their shares' value decrease, often leading to portfolio rebalancing.In conclusion, Equity Lifestyle Properties stock presents a compelling investment opportunity.
The analyst overall consensus is a 'Buy', with
3 strong buys and
3 buys, against 9 holds. The analyst target price estimated value stands at $72.21, indicating a potential upside from the current market valuation of $60.71. The valuation real value is $67.41, which is higher than the valuation market value and the valuation hype value of $60.52. The possible downside price is $59.05, while the possible upside price is $61.16. The naive expected forecast value is $60.11, which is slightly below the current market value. The EPS estimate for the next fiscal year ending in December is $1.85. Therefore, considering these factors, Equity Lifestyle Properties stock could be a valuable addition to your portfolio..
Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Equity Lifestyle Properties. Please refer to our
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