Trade of the Day: NNN Breakout Confirms Long-Term Bull Market

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National Retail Properties, Inc. (NNN) — NNN is up 6.5% in the past week since reporting its first-quarter results on May 2. Revenue of $126.9 million was slightly above analysts’ estimates, while adjusted funds from operations (FFO), a key metric in the real estate investment trust (REIT) industry, came in at 58 cents per share, a penny above expectations.

S&P Capital IQ Equity Research expect FFO to increase 9% to $2.35 per share in 2016 and another 6% to $2.50 in 2017. Its analysts note National Retail Properties benefits from a solid strategy of investing in single-tenant properties, which it rents to nationally recognized retailers with long-term leases, and where the tenant is primarily responsible for almost all of the property expenses.

Capital IQ expects National Retail Properties to benefit from improvements in the economy and its high occupancy rate, which stood at more than 99% at the end of last year. Its rates NNN a “Buy” and recently raised the 12-month price target by $7 to $50.

NNN has been in a strong bull market since hitting a low near $10 in 2009. On Friday, shares broke from a triple-top, which gives us a near-term price objective of $52. That is 9% above the current price, which may seem modest, but the breakout is verification of a long-term bull market in NNN that almost demands investors’ attention.

Accumulation has been steady, and the breakout was accompanied by a new buy signal from the MACD indicator.

Traders can buy NNN at the market price for a quick trade to $52, while investors may want to hold shares for exposure to a high-quality REIT with an attractive yield. NNN has paid a dividend since 1990, and its annual payment currently stands at $1.74 per share for a forward annual yield of 3.7%.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/05/national-retail-properties-inc-nnn-reit-trade-day/.

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