U.S. Markets close in 4 hrs 22 mins

The Zacks Analyst Blog Highlights: Mid-America Apartment, Essex Property Trust, Equity Residential, Equity LifeStyle and Agree Realty

Zacks Equity Research

For Immediate Release

Chicago, IL –October 10, 2019 – 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: Mid-America Apartment Communities, Inc. MAA, Essex Property Trust, Inc. ESS, Equity Residential EQR, Equity LifeStyle Properties, Inc. ELS and Agree Realty Corp. ADC.

Here are highlights from Wednesday’s Analyst Blog:

5 REITs to Buy as U.S. Blacklists Chinese Companies

Just before the United States and China are scheduled to meet for trade negotiation on Oct 11 and 12, America blacklisted 28 Chinese companies and placed visa restrictions on Chinese officials on human rights concerns.

This spooked markets, compelling investors to seek safer equity options. REITs seem to hold ground in this volatile market scenario.

Companies Blacklisted

On Oct 7, the U.S. blacklisted 28 Chinese companies that too just three days before the high-level trade negotiations are scheduled. U.S. President Donald Trump and his administration cited human rights violation as a reason behind the blacklisting.

This blacklisting has dealt a strong blow to China’s dominant AI industry and impede its growth in the United States. This move at the beginning of the week impacted Chinese tech giants like Hangzhou Hikvision Digital Technology Co., Ltd. dealing in video surveillance and the world’s most valuable AI startup, SenseTime.

U.S.-based firms will have to halt production and sales following the blacklisting. Shares of Ambarella plunged 9.5% after its prime customer Hikvision was blacklisted. Ambarella carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Chinese officials on Tuesday said that they will take retaliatory measures against the United States and advised American not to interfere in China’s internal affairs. In fact, the Chinese delegation visiting Washington on Oct 11 and 12, led by China’s Vice Premier Liu He, will not be carrying the title of “special envoy,” signaling that he has not received any specific instructions from President Xi Jinping.

Further, a report in the South China Morning Post claims that Beijing is anticipating that the upcoming trade talks to be fruitful. Investors were initially quite hopeful that this high-level talk would ease the ongoing trade war. But this blacklisting has raised doubts about the outcome of the trade talks among investors.

All the negative headlines have dampened the markets, pushing all major indexes to the negative territory. Investors are now looking for stocks that are least sensitive to trade and will provide stable returns; Real Estate Investment Trusts (REITs) seem apt in such a market scenario.

5 REITs to Buy

With trade issues lingering, investing in Real Estate Investment Trusts seems to be apt for now. REITs are the second least trade-sensitive sector and generate only 13% overseas revenues.    

In fact, stocks of REITs dealing with health care, date center and multifamily are the least affected and instead show a steady rise.

Moreover, the Real Estate Select Sector has gained 26.3% on a year-to-date basis compared with the 15.4% rise of the S&P 500. Hence, we have shortlisted five REITs which flaunt a Zacks Rank #2 (Buy) and have a steady dividend flow.

Mid-America Apartment Communities, Inc.is a publicly-traded REIT that owns, manages, acquires and develops quality apartments in the United States. Mid-America Apartment’s expected earnings growth for the current year is 4.3%. The Zacks Consensus Estimate for current-year earnings has moved north by 0.8% over the past 60 days. The stock has a dividend yield of 2.9%.

Essex Property Trust, Inc.is a publicly-traded REIT that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex Property’s expected earnings growth for the current year is 6.1%. The Zacks Consensus Estimate for current-year earnings has risen 0.5% over the past 60 days. The stock has a dividend yield of 2.4%.

Equity Residentialis a publicly-traded REIT that acquires, develops, redevelops, and manages rental apartment properties located in urban and high-density suburban markets across the United States. The company’s expected earnings growth for the current year is 6.2%. The Zacks Consensus Estimate for current-year earnings has climbed 1.2% over the past 60 days. The stock has a dividend yield of 2.6%.

Equity LifeStyle Properties, Inc. is a publicly-traded, self-administered, self-managed REIT. The company’s expected earnings growth for the current year is 8.5%. The Zacks Consensus Estimate for its current-year earnings has moved up 0.5% over the past 90 days. The stock has a dividend yield of 1.8%.

Agree Realty Corp.is a publicly-traded REIT dealing with acquisition and development of properties for retail tenants. Agree Realty’s expected earnings growth for the current year is 6.3%. The Zacks Consensus Estimate for current-year earnings has moved up 0.3% over the past 90 days. The stock has a dividend yield of 3.1%.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                 

https://www.zacks.com

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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Agree Realty Corporation (ADC) : Free Stock Analysis Report
 
Equity Residential (EQR) : Free Stock Analysis Report
 
Equity Lifestyle Properties, Inc. (ELS) : Free Stock Analysis Report
 
Essex Property Trust, Inc. (ESS) : Free Stock Analysis Report
 
Mid-America Apartment Communities, Inc. (MAA) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research