Netstreit earnings in focus: Shares near lows test buy thesis

Netstreit Corp. is set to release its third-quarter earnings on Wednesday, with investors closely watching the company's performance amid its shares trading near 52-week lows. Analysts are expecting earnings of $0.09 per share on revenue of $60.1 million, marking a slight sequential decline from the previous quarter. Despite the recent pressure, the Dallas-based REIT has maintained strong support from Wall Street, with a consensus Strong Buy rating and a mean price target of $22.24, indicating a 30% upside from its current price of $17.05.

While the stock hit a new 52-week low of $16.63 earlier this month due to rising interest rates, the company's substantial capital remains a point of interest. With $735 million of unsettled forward equity and an average forward equity price above $19 per share, Netstreit has more than a year of acquisition runway if deals are funded with approximately 65% equity.

However, investors will closely scrutinize the company's ability to deploy its capital efficiently and demonstrate execution on its $750 million acquisition target, particularly given the focus on necessity-based retail tenants.

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