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Agree Realty - AI Stock Analysis

Analysis generated November 30, 2024

Agree Realty Corporation (ADC) is a publicly traded real estate investment trust (REIT) specializing in the acquisition and development of properties net leased to industry-leading retail tenants. Headquartered in Bloomfield Hills, Michigan, the company has a diversified portfolio spread across various commercial real estate segments including retail and office spaces. The company's tenant base primarily consists of national brands with long-term leases, offering predictable and stable cash flows. ADC's strategic focus on high-quality tenants and attractive geographic markets positions it as a key player in the REIT industry.

Fundamental Analysis

The latest quarterly revenue for Agree Realty stands at $154 million, an increase of 1.15% compared to the previous quarter. When juxtaposed against last year’s same quarter, there is a robust 12.81% increase in revenue. This consistent year-over-year growth demonstrates the company's ability to scale its operations and generate higher income.

Net income for the last quarter was reported at $44 million, showing a 18.91% decrease from the prior quarter, which is a point of concern. However, comparing it to the same quarter last year, there's a modest increase of 6.87%, which tempers immediate concerns.

EBITDA for the last quarter was $126 million, representing a 4.89% decrease from the previous quarter. Yet, on a year-over-year basis, EBITDA has increased by an impressive 15.91%, showing underlying operational efficiency and growth.

The current price-to-earnings (P/E) ratio is at 42.9, a relatively high multiple that could indicate potential overvaluation. While high P/E ratios can reflect investor confidence in growth potential, they can also signify a bearish outlook if earnings fail to keep pace.

Technical Analysis

The current stock price for Agree Realty is $77.16, which exhibits an upward movement of 3.17% compared to a month ago, indicating a positive short-term trend. Over the past year, the stock price has soared by 34.00%, suggesting a bullish long-term trend.

The trend is confirmed by the Simple Moving Average (SMA) indicators. The current SMA10 is at 76.95, slightly higher than the previous SMA10 of 76.93. This marginal increase denotes a stable upward trend in price movement.

The Relative Strength Index (RSI) is currently at 57, indicating a neutral condition. This implies that the stock is neither overbought nor oversold at present.

Alternative Data Analysis

Examining alternative data, Agree Realty has 2 open positions listed on major job boards, a number that has remained stable over recent months, suggesting stable employment levels and possibly steady business operations. Employee sentiment towards the business outlook is reported as neutral.

The company's customer acquisition is highlighted by approximately 9,000 visitors to their webpage, though this number has decreased by 31% over the last few months, a potential cause for concern regarding customer interest. Contrastingly, customer engagement on social media shows that Agree Realty has 340 followers on Twitter, a minor but positive growth of 6% in recent months.

An additional layer of analysis is provided by AltIndex’s AI score, which synthesizes fundamental, technical, and alternative data. Agree Realty's AI score is 72, affording it a buy signal.

Conclusion and Recommendation

Agree Realty (ADC) shows a mixed bag of metrics. The fundamental analysis indicates a steady year-over-year growth in revenue and EBITDA, offset by a quarter-over-quarter decline in net income. The technical analysis points to a positive price trend bolstered by a stable SMA10 and a neutral RSI, suggesting room for further growth. However, the high P/E ratio could imply overvaluation risk.

Alternative data shows worrisome trends in customer acquisition, although stable job postings and a neutral business outlook help provide some balance. An increase in social media engagement also demonstrates growing interest in the company.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.