Based in Glendale, California, Public Storage (PSA) is a REIT that acquires, develops, owns, and operates self-storage facilities, which offer storage spaces for lease for personal and business use. Valued at a market cap of $55 billion, the company’s principal business activities include the ownership and operation of self-storage facilities and other related operations, including tenant reinsurance and third-party self-storage management.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and PSA fits the label perfectly, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the REIT sector. As one of the largest self-storage operators in the U.S., the company benefits from a vast network of facilities in prime locations, ensuring consistent demand. Its economies of scale allow for cost efficiencies and competitive pricing, strengthening its profitability. It also leverages advanced technology, including digital platforms and automated services, to enhance customer experience and operational efficiency.
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This self-storage REIT is currently trading 16.7% below its 52-week high of $369.99, reached on Oct. 1, 2024. PSA has declined 4.7% over the past three months, outpacing the broader Dow Jones Industrials Average’s ($DOWI) nearly 6.2% loss during the same time frame.
Moreover, on a YTD basis, shares of PSA are up 2.9%, outperforming DOWI’s 2.6% decline over the same time frame. However, PSA has gained 5.7% over the past 52 weeks, lagging behind DOWI’s 6.9% rise.
To confirm its recent bullish price trend, PSA has been trading above its 50-day moving average since mid-February. However, it has remained below its 200-day moving average since mid-December 2024.
On Feb. 24, PSA reported its mixed Q4 earnings results, and its stock gained 1.7% the following day. The company delivered revenues of $1.2 billion, which advanced 1.5% from the year-ago quarter and aligned with the Street’s expectations. Additionally, PSA expanded its portfolio by acquiring 17 self-storage facilities, adding 1.3 million net rentable square feet. However, on the downside, it reported a core FFO of $4.21 per share, which increased marginally from the year-ago quarter but fell short of Wall Street’s estimates of $4.23.
Public Storage has outpaced its rival, CubeSmart (CUBE), which declined 7.6% over the past 52 weeks and nearly 1.8% on a YTD basis.
Looking at PSA’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 19 analysts covering it, and the mean price target of $338.35 suggests a modest 9.8% premium to its current levels.
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