Glendale, California-based Public Storage (PSA) is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. Valued at a market cap of $53.1 billion, the company’s core business comprises month-to-month rentals for personal and business use, supplemented with packing supplies, insurance offerings, and third-party property management. 

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and PSA fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the REIT - industrial industry. As one of the largest self-storage REITs globally, it benefits from extensive geographic diversification with over 3,000 facilities and more than 200 million rentable square feet. Its trusted brand and broad presence offer strong competitive advantages, making it a go-to choice for both individual and business storage needs. The company operates under a highly efficient, vertically integrated model, which helps drive high margins and cost savings.

This self-storage REIT has dipped 18.2% from its 52-week high of $369.99, reached on Oct. 1, 2024. Shares of PSA have declined 3.6% over the past three months, lagging behind the Real Estate Select Sector SPDR Fund’s (XLRE) 1.4% drop during the same time frame.

Moreover, on a YTD basis, shares of PSA are up 1.1%, underperforming XLRE’s 2.9% rise. However, in the longer term, PSA has surged 10.5% over the past 52 weeks, slightly outpacing XLRE’s 10.2% rise over the same time frame. 

To confirm its bearish trend, Public Storage has been trading below its 200-day moving average since mid-December, 2024. However, it has remained above its 50-day moving average since late April. 

On Apr. 30, shares of Public Storage jumped 2.5% after its stronger-than-expected Q1 earnings release. The company delivered revenue of $1.2 billion and core FFO of $4.12 per share, both above the consensus estimates. Moreover, compared to the same quarter last year, both revenue and core FFO per share increased by 2.2%. Additionally, its same-store revenue showed a slight year-over-year improvement, although net operating income (NOI) experienced a marginal decline. Looking ahead to fiscal 2025, Public Storage expects same-store revenue growth to range between a 1.3% decline and a marginal increase, and projects NOI growth to fall within a range of 2.9% decline to marginal growth. 

PSA has outpaced its rival, Extra Space Storage Inc. (EXR), which gained 1.6% over the past 52 weeks and grew marginally on a YTD basis. 

Despite Public Storage’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 19 analysts covering it, and the mean price target of $335.06 suggests a 10.7% premium to its current price levels.