For Immediate Release
Chicago, IL – November 20, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Gaming and Leisure Properties, Inc. GLPI, Americold Realty Trust COLD and Arbor Realty Trust ABR.
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Here are highlights from Monday’s Analyst Blog:
3 Great REITs to Buy Now
The stock market’s strong run over the past few years brought attention to high-flying growth stocks, usually from the technology sector, that were consistently outpacing the market. However, fresh uncertainty within the last few months has shifted some focus back towards other investment strategies, and now it might be time for investors to check out things like real estate investment trusts, or REITs.
REITs are companies that own, operate, or finance real estate properties that produce income, such as apartment complexes or retail locations. These companies are heavily regulated and must meet a number of qualifications to be classified as a REIT, but they do offer investors a few distinct advantages.
First of all, real estate can be a very profitable investment sector when certain economic conditions are present. What’s more, REITs must pay at least 90% of their taxable income in dividends to shareholders, so they are a great option for income investors looking for steady payouts.
The presence of mortgage debt makes this a rate sensitive industry, so investors might not love some REIT choices in this rising rate environment. But many companies offset this through strong funds from operations (FFO) growth—or they stick out from the pack with large amounts of their debt already fixed at a low rate.
Luckily for Zacks readers, the proven Zacks Rank—which emphasizes earnings estimates and estimate revisions—works with REITs just as it would with any other company. We prefer to use FFO as the metric of profitability here, but the trends work the same otherwise. The strongest REITs are going to be those with improving outlooks and great Zacks Ranks.
With that said, check out the REITs that are model says are impressive options right now:
1. Gaming and Leisure Properties, Inc.
Gaming and Leisure Properties is an owner of regional casino properties leased to the likes of Boyd Gaming, Eldorado Resorts, and Penn National. All in all, the company owns 44 gaming properties. CLPI is a Zacks Rank #1 (Strong Buy) stock and yields about 7.5% right now. Analysts expect GLPI to witness long-term annualized FFO growth of 12.5%. The valuation remains attractive at a P/E of 10.5 and PEG of 0.8, and it is a relatively low beta option.
2. Americold Realty Trust
Americold is a REIT focused on owning and operating temperature-controlled warehouses. It boasts the largest network of these sort of facilities in the world, making it a dominant force in global food distribution and retail industries. The company held an upsized IPO at $16 per share earlier this year and has been trending higher since then.
COLD is sporting a Zacks Rank #2 (Buy) right now. The stock is trading at about 24x forward earnings, which is a slight premium to the average of its peers but within a reasonable range considering its industry dominance. Plus, Americold offers a dividend yield of 2.8% right now. FFO growth is expected to hit 13% in 2019, and 63% of the company’s debt is fixed rate.
3. Arbor Realty Trust
Arbor Realty is a specialized real estate finance company investing in real estate-related bridge and mezzanine loans, preferred equity, mortgage-related securities and other real estate-related assets. The company is a nice small-cap option for exposure to the U.S. mortgage market.
ABR sports a Zacks Rank #1 (Strong Buy). Analyst estimate trends have been positive, and the Zacks Consensus Estimate for the company’s full-year FFO has gained three cents over the past 60 days. ABR also offers an 8.9% yield based on current prices.
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Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Arbor Realty Trust (ABR) : Free Stock Analysis Report
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