#7 - Simon Property Group (NYSE:SPG)
Simon Property Group (NYSE: SPG) - The problem: They need a better mousetrap
Retail, in the form of brick and mortar stores, may not be dead. Like newspapers, malls may never completely die. But make no mistake, they’re still struggling. The problem isn’t just Amazon. It’s the idea that malls used to be a form of entertainment and, let’s face it, consumers have a lot more entertainment options today, and that means that a lot of retailers are still fleeing the overhead-intensive mall model. Which is a key reason Simon Property Group has a problem. Although their stock is sitting around $180, it still is surrounded, literally, by retailers such as Sears and JCPenney that are clearly failing. With all this said, it’s hard to justify a stock that is trading at 15x earnings. The company also offers a somewhat attractive dividend yield of 4.4%, but in a climate of rising interest rates, that will probably not be enough to impress investors.
About Simon Property Group
Simon Property Group, Inc (NYSE:SPG) is a self-administered and self-managed real estate investment trust (REIT). Simon Property Group, L.P., or the Operating Partnership, is our majority-owned partnership subsidiary that owns all of our real estate properties and other assets. In this package, the terms Simon, we, our, or the Company refer to Simon Property Group, Inc, the Operating Partnership, and its subsidiaries.
Read More - Current Price
- $181.14
- Consensus Rating
- Hold
- Ratings Breakdown
- 3 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $162.78 (10.1% Downside)
Anytime an investor sees stocks getting a bit frothy, it's a good time to evaluate, and perhaps rebalance their portfolio. Many of the stocks in this report are on the rebound after falling from recent highs. However, as the analysis shows, they all face issues that could put downward pressure on the stock in the short term or they may have issues that threaten the stock from a big picture perspective.
Investors hate uncertainty and with a general election coming up this Fall, there are many reasons why the big money in the market may be looking to take some profit. Now would be a good time to take some profit from these blue-chip stocks and shift money to some of their more conservative siblings.
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