Despite the Fed lift-off this month, we believe that adding CoreSite Realty Corporation COR to your investment portfolio is a good idea right now.
Coresite Realty provides data center products and interconnection services to telecommunication carriers, content and media entertainment providers, cloud providers, enterprise customers, financial and educational institutions, and government agencies.
Notably, shares of this Denver, CO-based REIT gained over 49% year to date. Besides the robust stock price performance, Coresite Realty continues to reflect strength in several areas, including consistent top-line growth and increasing cash flow from operations.
3 Reasons Why Coresite Realty is an Attractive Pick
Sales Growth: Coresite Realty boasts five-year historical sales growth of 22.41%. Moreover, its projected sales growth (F1/F0) of 10.87%, as against the industry average of 8.19%, promises continued top-line growth.
Cash Flow Growth: Coresite Realty enjoys decent cash flow growth, which is much needed to drive a business, going forward. At present, its cash flow growth stands at an impressive 22.54%, which is not only ahead of many of its peers but also above the industry average of 21.30%.
Earnings per Share: Coresite Realty posted an earnings surprise of 2.78% in the last reported quarter. In fact, its historical EPS growth (3–5 years) of 30.71% is well above the industry average of 6.49%.
Moreover, its earnings momentum is expected to continue in the near term as reflected by the company’s projected EPS growth (F1/F0) of 27.93%, compared to the industry average rate of 7.20%. This reflects strong prospects for the company. Also, the company’s long-term (3–5 years) estimated EPS growth rate of 15.70% (versus the industry growth rate of 8.0%) promises rewards for investors in the long run.
Bottom Line
Considering these positive traits, we believe that investing in Coresite Realty right now should not disappoint you. The company currently has a Zacks Rank #2 (Buy). Moreover, reflecting its solid growth potential, the stock has a Zacks Growth Style Score of ‘A’. According to our style score system, a stock with a favorable Zacks Rank and a Zacks Growth Style Score of ‘A’ (or ‘B’) are highly desirable.
Other Stocks to Consider
Other well-ranked stocks in the REIT space include Cousins Properties Incorporated CUZ, Public Storage PSA and SL Green Realty Corp. SLG. All three stocks carry the same Zacks Rank as Essex Property.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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