With its next quarterly earnings report set for around May 6, IBD 50 member Innovative Industrial Properties (IIPR) is currently about 19% shy of a 222.18 entry. The entry is based on a first-stage consolidation.
Analysts expect EPS growth of 26% for the quarter, and 39% growth for the full year. Annual growth estimates were recently revised lower.
Innovative Industrial Sales Growth
The small-cap REIT has seen earnings growth slow lately. Last quarter it reported a 9% rise in EPS to $1.29. However, that followed quarterly EPS growth of 107%, 102% and 49% the prior three periods.
Sales continue to grow at a fast clip as the young industry expands. In its most recent quarter, Innovative Industrial reported a 110% leap in sales to $37.1 million. Although brisk, that was lower than the 210%, 182% and 197% gains the prior three quarters.
Most analysts think the market for recreational marijuana is poised to take off because the Biden administration is more friendly to legalizing its use at the federal level. That’s seen as aa necessary step for the industry to grow at a meaningful rate.
REIT Not Directly Involved In Pot Market
Park City, Utah-based Innovative Industrial Properties isn’t directly involved in growing and marketing pot products. Instead, the real estate investment trust buys properties and leases them to companies marketing products. This shields it from legal and social repercussions.
In terms of technical ratings, Innovative Industrial Properties has a 93 Composite Rating and holds the No. 3 rank among its peers in the Finance-Property REITs industry group. Power REIT (PW) is the No. 1-ranked stock in the group.
Innovative Industrial’s stock slid about 1%, in sync with the market pullback Thursday afternoon, to 178.21.
Be aware that buying just before a stock reports can be risky, since disappointing numbers could send it sharply lower. You can reduce your risk by waiting to see the actual numbers and the market’s reaction. You can also use an options strategy to limit your potential downside.
Note: Dates for earnings reports are subject to change. Check the company’s website for any updates.
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