Is EPR Properties a Buy?
EPR Properties (NYSE: EPR) is a unique real estate investment trust (REIT). This has not served investors well in 2020 -- but cracks were starting to show up even before the coronavirus appeared on the scene. That said, COVID-19 was something of a "rip the bandaid off" type of event for EPR Properties and its investors, and value investors might be wondering if now is the time to buy this beaten-down landlord. Here are some things to think about before you do that.
EPR's stock price is off by more than 50% so far in 2020. Compare that to the average real estate investment trust, as measured by Vanguard Real Estate ETF, which is down around 15%. Clearly, EPR has been hit extra hard by the impact of COVID-19 (more on this in a second). It would hardly be surprising to see this name pop up on a "bottom fishers" list of investment ideas.
When looking at down-and-out stocks, however, you need to step back and think about what you are really looking at. If Wall Street thinks EPR is worth half of what it was just seven months ago, what's going on? Is there something here I'm missing? Put simply, a depressed price alone isn't enough information to make a good investment decision.
Source Fool.com
