4-Star Stocks Poised to Pop: HRPT Properties

Recs

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Based on the aggregated intelligence of the 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, real estate investment trust (REIT) HRPT Properties (NYSE: HRP) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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

HRPT facts

Headquarters (founded)

Newton, Mass. (1986)

Market Cap

$441.7 million

Industry

Commercial REIT

TTM Revenue

$872.9 million

Management

CIO John Mannix

CFO John Popeo

Return on Equity (average last three years)

5.8%

Dividend Yield

43.3%

Competitors

Liberty Property Trust (NYSE: LRY),

Mack-Cali Realty (NYSE: CLI)

CAPS members bullish on HRP also bullish on:

Bank of America (NYSE: BAC),

Johnson & Johnson (NYSE: JNJ)

CAPS members bearish on HRP also bearish on:

Citigroup (NYSE: C),

Duke Realty (NYSE: DRE)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, some 94% of the 509 members who have rated HRPT believe the stock will outperform the S&P 500 going forward. These bulls include woofiecodie and haulinazz469.

Late last month, woofiecodie displayed utmost confidence in the dividend:

Well-disciplined approach will prove this yield going forward. Outstanding price/book also as specific portfolio assets are generally government or medical related. Rental rates [per square foot] up nicely in latest qtr and occupancy remains strong.

In a pitch from two days ago, haulinazz469 shares that sentiment, tapping HRPT as a rare low-risk, high-yield situation:

Good Balance Sheet, Good cashflow, Good Stable Prudent Management, Commitment to returning value to shareholders by maintaining the dividend.

The dividend isn't too high, the stock is just WAY undervalued.

What do you think about HRPT, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Bank of America and Johnson & Johnson are Motley Fool Income Investor picks. The Fool's disclosure policy always gets a perfect score.

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11/20/2009 4:00 PM
BAC $16.09 Up +0.01 +0.06%
Bank of America Co… CAPS Rating: ***
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