The Zacks Analyst Blog Highlights: NexPoint Residential Trust, American Homes 4 Rent, Kinross Gold and Newmont Corp
For Immediate Release
Chicago, IL – March 17, 2021 – 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: NexPoint Residential Trust, Inc. NXRT, American Homes 4 Rent AMH, Kinross Gold Corporation KGC and Newmont Corporation NEM.
Here are highlights from Tuesday’s Analyst Blog:
4 Stocks to Gain Ground as Inflation Worries Mount
Inflation expectations in the United States have been increasing for quite some time now. According to a Barron's article, per the St. Louis Federal Reserve, inflation for the next decade is projected to run above 2%. In fact, the Statista Research Department noted that the annual rate of inflation this year is expected to rise roughly 2.24%.
Inflation expectations, by the way, are increasing as the U.S. economy has started to show signs of strength this year, especially after the drubbing it received from the coronavirus outbreak last year. Needless to say, rapid economic progress drives prices of essential commodities as well as wages, eventually leading to a higher inflation rate.
Talking about the economy, consumer spending has improved lately and it's mostly because of increased household income. Home sales have picked up and demand for manufacturing goods is also on the rise. The service side of the U.S. economy, in the meantime, continues to expand this year, a clear indication of economic momentum.
To top it, the Biden administration has signed the massive $1.9-trillion coronavirus stimulus package that would provide relief to small business houses, aid local government authorities, and most importantly, provide checks to millions of Americans, which undoubtedly should pep up the economy in the near future.
Lest we forget, the coronavirus vaccination process has picked up steam in recent times, resulting in a lesser number of new coronavirus cases, which again is another encouraging sign of economic growth in the days to come.
Coming back to inflation, it's causing a lot of anxiety among investors. With inflation expectations rising, bond yields are further poised to stay elevated, thereby damaging the allure of riskier investments like growth-oriented tech stocks. Anyhow, such stocks have lofty valuations, which make them less attractive. But, from an investment standpoint, there are stocks that actually tend to gain on a rise in inflation, which at this moment should be compelling enough for investors to keep an eye on.
First and foremost, real estate is an obvious choice. This is because property prices scale northward with rising inflation. Also, with an increase in the value of the property, the amount charged by landlords for rent increases over time. This, in turn, results in higher rental income. Now, real estate can be indirectly purchased through investment in a real estate investment trust (REIT).
Second, unlike paper currencies, gold doesn't seem to lose its value at times of higher inflation. In fact, the demand for gold as well as other precious metals increases when inflation rises. Incidentally, gold can be purchased through investments in gold mining stocks. We have, thus, highlighted four such stocks from the aforesaid areas that are worth a watch as of now.
NexPoint Residential Trust is engaged in acquiring, owning, operating and selectively developing multifamily properties. It operates primarily in the Southeastern United States and Texas. The company currently has a Zacks Rank #2 (Buy).
The company's expected earnings growth rate for the current and next year is 4.1% and almost 9%, respectively. You can see the complete list of today's Zacks #1 Rank stocks here.
American Homes 4 Rent is an internally-managed real estate investment trust. It is focused on acquiring, renovating, leasing, and operating single-family homes as rental properties. It rents residential properties, primarily in Arizona, California, Florida, Georgia and Nevada. The company currently has a Zacks Rank #3 (Hold).
The company's expected earnings growth rate for the current and next year is 9.5% and 8.7%, respectively. Furthermore, the company's projected earnings growth rate for the next five-year period is 15.4%.
Kinross Gold is primarily involved in the exploration and operation of gold mines. It is based in Ontario, Canada, but holds major assets in the United States. Kinross also produces and sells silver. The company currently has a Zacks Rank #3 and a Growth Score of A.
The company's expected earnings growth rate for the current and next quarter is 90% and 26.7%, respectively. What's more, the company's projected earnings growth rate for the next year is 29.5%.
Newmont Corp. is one of the world's largest producers of gold, with several active mines in Nevada, Peru, Australia and Ghana. Newmont's operating segments are North America, South America, Australia and Africa. The North America segment has operations in the United States.
The company currently has a Zacks Rank #3 and a Growth Score of A. The company's expected earnings growth rate for the current and next quarter is 142.5% and 209.4%, respectively. Additionally, the company's projected earnings growth rate for the current year is 41.7%.
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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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Kinross Gold Corporation (KGC) : Free Stock Analysis Report
Newmont Corporation (NEM) : Free Stock Analysis Report
American Homes 4 Rent (AMH) : Free Stock Analysis Report
NexPoint Residential Trust, Inc. (NXRT) : Free Stock Analysis Report
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