Is Digital Realty Stock a Buy?
It is an indisputable fact that the stocks behind the best businesses in the world can experience temporary setbacks, because market sentiment can shift dramatically and quickly. Even former market darlings can be left in the dust.
Shares of the data center real estate investment trust (REIT) Digital Realty Trust (NYSE: DLR) have fallen by 18% in the past 12 months, significantly underperforming the broader market. This raises some questions: Are the fundamentals of the company intact? And should income investors still buy the stock? Let's peek at Digital Realty Trust's core elements and valuation to reach a conclusion.
The reasons that make Digital Realty Trust a compelling investment have remained unchanged for years now. For one, the company is a leader in its sector, with 310-plus data centers and approximately 5,000 customers around the world. Such a vast and diverse customer base has the benefit of providing Digital Realty with a consistent stream of demand for its data centers.
Source Fool.com
