Is Medical Properties Trust Stock a Buy?
Buying shares of a beaten-down stock that has been struggling for years is a risky proposition to consider. For contrarian investors, the allure is the potential for the stock to turn things around and deliver some mammoth returns, possibly doubling or tripling in value if things go right. But many times, it doesn't turn out that way.
Medical Properties Trust (NYSE: MPW) is a prime example of a high-risk, high-reward stock. In just the past three years, the stock price for this real estate investment trust (REIT) has fallen 77%. During that time, the healthcare-focused REIT also slashed its dividend nearly in half. There has been no shortage of problems surrounding the business.
Given those factors, this isn't a stock risk-averse investors should be considering. But if you are an investor with a higher risk tolerance, there could be an opportunity worth considering with Medical Properties Trust, given its sharply reduced valuation.
Source Fool.com
