NNN Stock Analysis — NNN REIT, Inc.
Sector: REIT
AI Verdict
You're paying a premium the numbers don't yet support, so unless NNN can reignite earnings growth, the stock looks expensive for what you're getting.
Competitive Moat
NNN owns a diversified portfolio of single-tenant net lease retail properties, locking in long-term rental income with minimal landlord responsibilities. The defensibility comes from its scale and tenant diversification, reducing risk from any single default.
Summary
NNN's stable net lease model is under scrutiny as earnings growth stalls but the P/E remains above typical REIT levels.
Where It Stands
NNN trades at 22.1x next year's earnings, which is expensive for a REIT with just 0.6% forward EPS growth and a trailing PEG ratio of 38.18.
Key Metrics
- Trailing P/E: 22.2x
- Forward P/E: 22.1x
- PEG Ratio: 38.18
- Earnings Growth: +0.0%
- Revenue Growth: +0.1%
- Dividend Yield: 0.06%
- 52-Week High: $50.00
- 52-Week Low: $38.90
Analyst Consensus
3 Buy · 15 Hold · 8 Sell (26 analysts)
Bull Case
The 6.5% trailing revenue growth shows the portfolio is still expanding, which could eventually support higher earnings.
Bear Case
If the P/E multiple drops to the REIT sector median of ~15x, the stock could lose about a third of its value unless growth accelerates.
Catalyst to Watch
Watch for quarterly earnings updates—any sign of accelerating EPS growth could justify the premium multiple.