Why STAG Industrial Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, real estate investment trust STAG Industrial has earned a coveted five-star ranking.

With that in mind, let's take a closer look at STAG and see what CAPS investors are saying about the stock right now.

STAGfacts

Headquarters (founded)

Boston, Mass. (2010)

Market Cap

$693.3 million

Industry

Industrial REIT

Trailing-12-Month Revenue

$78.6 million

Management

Chairman/CEO Benjamin Butcher

CFO Gregory Sullivan

Trailing-12-Month Return on Equity

(2.5%)

Cash/Debt

$10.7 million / $274.5 million

Dividend Yield

5.4%

Competitors

First Industrial Realty Trust

Monmouth Real Estate Investment

Welsh Property Trust


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, all 11 members who have rated STAG believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, All-Star TMFDeej, succinctly summed up the STAG bull case for our community:

This one is not quite as "special" as my normal special situation picks, but I think that it will continue to significantly outperform the market. Besides, what [can I say] ... I'm a sucker for yield.

Stag is the fastest growing company in the solid Industrial REIT sector, yet is also pays the highest dividend. That doesn't make much sense and will not continue if Stag continues to perform the way it has.

According to REIT expert Brad Thomas, Stag has moderate leverage and sector-best metrics. This trade is a bet that Mr. [M]arket will eventually recognize this quality and award STAG with a higher multiple. We are paid a yield of nearly 6% to wait for this to happen.

If you want to retire rich, you need to put together the best portfolio you can. Of course, despite its five-star rating, STAG may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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The article Why STAG Industrial Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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