STAG Industrial (STAG) was removed from the Russell 1000 Dynamic Index on June 27, 2026, drawing attention to how this index change could influence short term trading flows and liquidity.

STAG Industrial’s recent removal from the Russell 1000 Dynamic Index comes after a period where momentum has been gradually building, with a 30 day share price return of 4.99% and a 1 year total shareholder return of 12.0% from a US$39.12 share price.

If this index change has you thinking about where else capital might find opportunities, it could be a good moment to scan the market using the 19 top founder-led companies

After STAG Industrial’s recent climb and index removal, the key issue now is whether most of the easy upside is already reflected in the US$39.12 share price, or if the current valuation still leaves clear room ahead.

Most Popular Narrative: 5.8% Undervalued

Against STAG Industrial’s last close at $39.12, the most followed narrative pegs fair value at about $41.55, framing the recent index removal against a slightly higher intrinsic estimate built on detailed revenue and margin assumptions.

The analysts have a consensus price target of $41.55 for STAG Industrial based on their expectations of its future earnings growth, profit margins and other risk factors. In order for you to agree with the analysts, you would need to believe that by 2029, revenues will be $1.1 billion, earnings will come to $227.0 million, and it would be trading on a PE ratio of 48.9x, assuming you use a discount rate of 9.2%.

Curious what underpins that fair value gap for STAG Industrial? The narrative leans on a specific revenue path, shifting margins, and a future earnings multiple that may surprise you.

Result: Fair Value of $41.55 (UNDERVALUED)

However, the STAG Industrial narrative could be tested if longer lease up periods, uneven regional demand, or higher vacancies weigh on occupancy, rent spreads and income resilience.

Another View: STAG Industrial On Earnings Multiples

There is a different read on STAG Industrial when you shift from fair value estimates to what investors are paying today. The stock trades on a P/E of 30.7x, compared with 16x for the global Industrial REITs group and a fair ratio estimate of 32x.

This means the market price is already well above the sector average, yet still slightly below the fair ratio that models suggest the P/E could move toward over time, which tightens the margin for error. If earnings or sentiment wobble, how much comfort does that really leave you in the current price?

Next Steps

With STAG Industrial presenting both potential risks and rewards, this is a good moment to review the data yourself, assess how comfortable you are with the current setup, and then weigh those signals against the 3 key rewards and 3 important warning signs

Looking for more investment ideas beyond STAG Industrial?

If the STAG Industrial story has you thinking about what else could fit your portfolio, this is a good time to widen the search with focused stock lists.

• Spot fresh value by scanning companies that currently look mispriced on quality and valuation using the 45 high quality undervalued stocks.
• Strengthen your income stream by reviewing companies with robust payouts through the 9 dividend fortresses.
• Prioritise resilience by filtering for companies with healthier finances using the solid balance sheet and fundamentals stocks screener (47 results).

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.