Market volatility and an earnings miss have taken the shares of this real estate company to bargain levels. The analysts’ mean consensus price target is $179—a considerable advance from current trading levels.
Jones Lang LaSalle (JLL)
From DRIP Investor
I can’t say for certain that this market has bottomed or is close to bottoming. I can say for certain that some of my favorite indicators are saying that stocks are, well, hated right now, and such times have represented excellent opportunities to be adding to your portfolio.
The good news is that DRIP investors have a built-in mechanism for taking advantage of market declines—dividend reinvestment. And if you have any additional cash on the sidelines, I’m not suggesting you should dump all of it into the market right now. But doing some buying in beaten-down favorites makes sense.
Jones Lang LaSalle (JLL) provides a variety of commercial real-estate services. The stock is down 24% from its 52-week high of $180. The company should post record per-share earnings and sales in 2016. The stock trades at 13 times the 2016 earnings estimate of $10.55 per share, an attractive multiple given the company’s expected long-term growth potential.
While the stock could weaken further if the overall market continues to falter, I would feel quite comfortable initiating positions in the stock at current prices and adding on dips.
The company offers a direct-purchase plan whereby any investor may buy the first share and every share of stock directly from the company. Minimum initial investment is $250, though the firm will waive the minimum if an investor agrees to automatic monthly investment via electronic debit of a bank account of at least $50 for five months. There is a one-time enrollment fee of $15. Purchase fees are $5 ($2 if made with electronic debit from a bank account) plus $0.06 per share. The fee to reinvest dividends is $1.50 plus $0.06 per share. Selling fees are $15 for a batch sale and $25 for a market or limit order plus $0.12 per share. The plan administrator is Computershare. For enrollment information call (866) 210-8055 or visit www.computershare.com.
Charles A. Carlson, CFA, DRIP Investor, www.dripinvestor.com, 800-233-5922, February 2016