Highwoods Properties (HIW) has drawn fresh attention after recent trading, with the share price near $27.20 and mixed return patterns over the past year. This has prompted investors to reassess this office focused REIT.

Recent trading has been choppy, with a 1 day share price return of 1.49% and a 30 day share price return of 6.08%. The 1 year total shareholder return of a 2.19% decline contrasts with an 18.64% gain over three years, suggesting longer term holders have seen more consistent momentum than short term traders.

If this kind of mixed performance has you comparing options, it could be a useful moment to broaden your watchlist with fast growing stocks with high insider ownership.

With Highwoods trading near $27.20, an indicated 36% intrinsic discount and only a modest gap to analyst targets, the real question is whether the market is overlooking value or already pricing in all the future growth.

Most Popular Narrative: 8.4% Undervalued

The most followed narrative sees Highwoods Properties' fair value at about $29.70, a little above the recent $27.20 close, which frames today’s price as a discount rather than a premium.

The analysts have a consensus price target of $30.75 for Highwoods Properties based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $34.0, and the most bearish reporting a price target of just $23.0.

Curious how a company with shrinking earnings forecasts, shifting margins and a rich future P/E assumption still lands at this fair value? The valuation hinges on a specific revenue path, a reset profit margin and a premium earnings multiple that is usually reserved for faster growing names. Want to see how those pieces fit together and what that implies for future cash flows and pricing power? Read on to unpack the full narrative behind this call.

Result: Fair Value of $29.70 (UNDERVALUED)

However, there is a real risk that stronger leasing in key Sunbelt markets, or more effective asset recycling, could support higher occupancy, firmer rents and better earnings than implied here.

Build Your Own Highwoods Properties Narrative

If parts of this story do not sit right with you, or you would rather lean on your own work and preferred assumptions, you can pull up the same data, test different scenarios and put together a full view in just a few minutes with Do it your way.

A great starting point for your Highwoods Properties research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If you are serious about building a stronger watchlist, do not stop with one REIT. Use the screener tools to quickly surface other potential opportunities.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.