Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, real estate investment and development company Howard Hughes (NYSE: HHC ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Howard Hughes' business and see what CAPS investors are saying about the stock right now.
Howard Hughes facts
| Headquarters (Founded) |
Dallas (1913) |
| Market Cap |
$1.78 billion |
| Industry |
Diversified REIT |
| Trailing-12-Month Revenue |
$187 million |
| Management |
CEO David Weinreb
CFO Andrew Richardson
|
| Trailing-12-Month Return on Equity |
(3.8%) |
| Cash/Debt |
$276 million / $307 million |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 172 members who have rated Howard Hughes believe the stock will outperform the S&P 500 going forward. These bulls include fellow Fool Andy Cross (TMFOpie), who is ranked in the top 5% of our community, and kenjotto.
Less than two months ago, Andy nicely summed up the bull case:
HHC is a long-term asset play backed by some smart investing dollars. Their Hawaii[a]n assets (a play on intl trade) could turn out to be very profitable. In the short-term the stock could bo[u]nce all over the place because the earnings are lumpy. But ultimately they are worth more than $45 per share once valued in.
In fact, Howard Hughes currently sports a cheapish price-to-book of 0.8. That represents a clear discount to industry peers like Simon Property Group (NYSE: SPG ) (8.2) and Vornado Realty Trust (NYSE: VNO ) (2.6).
CAPS member kenjotto elaborates on the bull case:
HHC is a newly formed company comprising of high quality assets cherry picked out of the former [General Properties (NYSE: GGP ) ] during bankruptcy. It is developing it assets into world class planned communities, operating mixed-use properties, and high value for-sale locations. Great point No. 1 -- some of these assets are valued at little to zero on the balance sheet. Great point No. 2 -- this incredible company was put together by Bill Ackman of Pershing Square, and the management team consists of strong leaders from TPMC Realty. So, it's got a rock star team piloting high quality properties valued at near zero based on their cost. It should be a recipe for incredible returns for those who can ride out the development time.
What do you think about Howard Hughes, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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