Last Updated: 13 Sep 2024
Executive Summary
EastGroup Properties Inc. (EGP) is a well-established industrial REIT with a strong focus on Sunbelt markets. The company's financials are solid, with healthy revenue and earnings growth, and its dividend yield is attractive. Technically, the stock is currently trading above its 50-day and 200-day moving averages, indicating a bullish trend. Analysts are generally positive on EGP, with a consensus rating of "Buy."
Company Overview
EastGroup Properties Inc. is a self-managed capital real estate investment trust (REIT) that focuses on the development, acquisition, and operation of industrial properties in major Sunbelt markets in the United States. The company's portfolio consists of over 600 properties totaling approximately 60 million square feet of leasable space. EastGroup's tenants are primarily businesses in the logistics, distribution, and manufacturing sectors.
Fundamental Analysis
EastGroup Properties Inc. has a strong financial profile. The company's revenue and earnings have grown steadily in recent years, and its profit margins are healthy. The company's balance sheet is also strong, with low debt levels and ample liquidity.
Revenue: $608.99 million (TTM)
Net income: $226.7 million (TTM)
EBITDA: $396.78 million (TTM)
Net income margin: 37.2%
EBITDA margin: 40.6%
Technical Analysis
EastGroup Properties Inc. stock is currently trading at $184.86, above its 50-day moving average of $183.25 and its 200-day moving average of $176.08. The stock has been in a bullish trend since early 2023, and it has recently broken out of a consolidation pattern. The relative strength index (RSI) is also above 50, indicating that the stock is not overbought.
Short Term Outlook
Technically, EastGroup Properties Inc. stock is in a bullish trend and is likely to continue to move higher in the short term. The stock is currently trading above its key moving averages, and the RSI is above 50. The next resistance level is at $190, and if the stock can break through this level, it could move up to $200.
Long Term Outlook
EastGroup Properties Inc. is a well-managed company with a strong financial profile and a solid track record of growth. The company's focus on the Sunbelt markets is a positive long-term factor, as these markets are expected to continue to grow in the coming years. The company's dividend yield is also attractive, and it is likely to continue to increase over time.
Analyst Recommendations
Analysts are generally positive on EastGroup Properties Inc. stock. The consensus rating is "Buy," and the average price target is $197.71. Four analysts have a "Strong Buy" rating on the stock, four have a "Buy" rating, and 12 have a "Hold" rating. No analysts have a "Sell" or "Strong Sell" rating on the stock.
