Real estate investment trust (REIT) Medical Properties Trust Inc. (NYSE:MPW) not only dropped to a new four-year low, it also underperformed the benchmark Real Estate Select Sector SPDR (NYSE:XLRE) last week on both daily and weekly looks. Birmingham, Alabama-based Medical Properties invests in healthcare facilities.
With a low price-earnings ratio of 5 and now trading at just 69% of book value, some might view it as a possible value stock but with a less-than-special price-to-free cash flow of 2 and more long-term debt than equity, that’s unlikely. Wall Street analysts are forecasting a 36% drop in earnings next year.
