The Zacks Analyst Blog Highlights Invitation Home, American Homes 4 Rent and Centerspace
For Immediate Release
Chicago, IL – September 15, 2023 – 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: Invitation Home INVH, American Homes 4 Rent AMH and Centerspace CSR.
Here are highlights from Thursday’s Analyst Blog:
3 Top Inflation-Beating REITs You’ll Regret Not Buying Soon
Higher fuel prices pushed up consumer inflation in the United States in August. This calls for investing in real estate investment trusts such as Invitation Home, American Homes 4 Rent and Centerspace as they provide natural protection against inflation.
Inflation Still Running Hot
Prices of necessary commodities continue to rise persistently. The Labor Department stated that the consumer price index (CPI) increased 0.6% month over month in August. It’s the CPI’s biggest monthly gain in 14 months. From a year ago, inflation moved up 3.7% in August.
The core CPI that tends to set aside the volatile food and energy costs also rose 0.3% last month, more than the 0.2% increase in the prior two months. The yearly rate of core CPI, too, increased 4.3%.
The cost of gasoline, food and shelter all perked up in August. Most importantly, airfares soared almost 5% last month following four successive monthly declines and contributed to the elevated inflation reading. What’s more, prices of trucks, cars, auto insurance and home furnishing also rose in August.
Nonetheless, the rise in oil prices in recent times predominantly increased price pressures. After all, higher oil prices push up transportation costs and, in turn, increase the price of essential goods sequentially.
Higher Oil Prices
Oil prices have ticked up lately as oil demand is widely expected to remain robust amid tighter supply. The Organization of the Petroleum Exporting Countries (OPEC) recently said that oil demand is expected to increase by 2.25 million barrels a day across the globe next year.
This is because major economies, including China, are expanding at a promising pace, which will result in more import of oil and boost demand.
On the other hand, both major oil producers, such as Saudi Arabia and Russia, have agreed to trim the production of oil till the end of this year. Such output cuts lead to the tightening of supply and boost oil prices (read more: 4 Stocks to Gain as Oil Prices Hit 2023 Highs).
REITs Acts as Hedge Against Inflation
Higher oil prices leading to elevated inflation may burn a hole in your pocket, but from an investment standpoint, investing in a real estate investment trust (REIT) seems judicious.
After all, property prices scale northward with a rise in inflation. At the same time, landlords charge more in terms of rent, resulting in higher rental income. Notably, real estate can be acquired through investments in REITs.
3 Solid Choices
Amid such inflationary pressure, one should consider investing in the following three REITs that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Invitation Home provides real estate services. It focuses on owning, renovating, leasing and operating single-family residential properties.
The Zacks Consensus Estimate for its current-year earnings has moved up 0.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 7.2%. INVH, presently, has a Zacks Rank #2.
American Homes 4 Rent is focused on acquiring, renovating, leasing and operating single-family homes as rental properties.
The Zacks Consensus Estimate for its current-year earnings has moved up 1.9% over the past 60 days. The company’s expected earnings growth rate for the current year is 7.1%. AMH, now, has a Zacks Rank #2.
Centerspace is a real estate development company.
The Zacks Consensus Estimate for its current-year earnings has moved up 8.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 5%. CSR, currently, has a Zacks Rank #1.
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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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American Homes 4 Rent (AMH) : Free Stock Analysis Report
Invitation Home (INVH) : Free Stock Analysis Report
Centerspace (CSR) : Free Stock Analysis Report
