Investors Still Have Many Reasons To Be Upbeat About W. P. Carey Inc. (WPC)

Undoubtedly, W. P. Carey Inc. (NYSE:WPC) has been one of the most volatile stocks in the market in recent times, and the way it handled Thursday’s volatility suggests the stock may be poised to rise heading into short-terms. The shares accumulated 0.27 points or 0.35 percent at $77 with a heavy trade volume of 2.171 million shares. After opening the session at $77, the shares went as high as $77.41 and as low as $77, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $12.7 billion and now has 164.4 million shares outstanding. W. P. Carey Inc. (WPC) stock has gained 2.2 percent of market value in 21 trading days.

WPC stock has a trailing 3-year beta of 0.65, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.49 a share in the trailing twelve months. The stock’s value has surged 17.85 percent year to date (YTD) against a rise of 24.39 percent in 12 month’s time. The company’s shares still trade -0.56 percent away from its 1-year high of $77.43 and 27.27 percent up from 52-week low of $60.50. The average consensus rating on the company is 3.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

W. P. Carey Inc. (WPC) will probably climb -8.73 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $83-month high price target. This represents a whopping 7.79 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $73, which represents a return potential of -5.19 percent when compared to the closing price of the stock of $77 on Thursday, March 14. The lowest price target for the stock is $68.25 — slightly more than -11.36 percent from WPC’s current share price.

History has shown that shares in W. P. Carey Inc. have gone down on 19 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. Investors will get their next glimpse of WPC’s Q1 earnings on May 07. Analysts are forecasting revenue to climb 51.7 percent to $306M in the fiscal first quarter, while earnings are seen soaring by nearly -100 percent to $0 per share. It earned $1.64 per share, better than the $0.51, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $273M, worse than the $280M analysts expected. Earnings are estimated to increase by 40.5 percent this year, 0.5 percent next year and continue to increase by 0 percent annually for the next 5 years.

The stock is currently hovering around the first support level of $76.86. Below this, the next support is placed in the zone of $76.72. Till the time, the WPC stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 76.39 on daily chart, which may remain a cause for concern. If the price breaks below $76.72 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $77.28 mark may result into a pull-back move towards $77.55 level.

Shares of W. P. Carey Inc. (WPC) are trading at a P/E ratio of 21.96 times earnings reported for the past 12 months. The industry WPC operates in has an average P/E of 29.09. Its P/E ratio went as low as 18.7X and as high as 36.6 over the 5-year span.Further, it is sporting a 14.29 on the Price-to-Sales ratio. Compare this with the industry average P/S of 11.66. 88.5 percent is the gross profit margin for W. P. Carey Inc. and operating margin sits at 46 percent. Along with this, the net profit margin is 46.4 percent.