(NXDT) NexPoint Strategic - Ratings and Ratios

NexPoint Strategic Opportunities Fund (NYSE:NXDT) is an externally advised diversified real estate investment trust (REIT) listed on the New York Stock Exchange. The fund primarily aims to generate both current income and capital appreciation for its shareholders. NXDT achieves this by diversifying its investments across various commercial real estate property types and capital structures, including mortgage debt, mezzanine debt, and equity positions in industrial, hospitality, net lease, retail, office, storage, and healthcare properties. Additionally, the fund may hold or transact in non-real estate securities to a limited extent.

As of the latest data, NXDT has a market capitalization of approximately $207.95 million. The funds price-to-book (P/B) ratio stands at 0.25, indicating potential undervaluation relative to its book value. The price-to-sales (P/S) ratio is 2.64, reflecting moderate valuation compared to its revenue. However, the return on equity (RoE) is negative at -6.51, signaling challenges in profitability. The funds average trading volume over the past 20 days is 159,485 shares, with a last price of $4.77. The short-term moving averages (SMA 20: $5.00, SMA 50: $5.46, SMA 200: $5.38) suggest a potential downtrend, while the average true range (ATR) of 0.19 indicates relatively low volatility.

Based on the technical and fundamental data, the three-month forecast for NXDT points to continued underperformance. The negative return on equity and the downward trend in moving averages suggest potential challenges in maintaining current income levels. The low ATR indicates limited price movement, but the overall trend may remain bearish given the negative earnings and valuation metrics.