|Bid||14.27 x 1000|
|Ask||23.70 x 900|
|Day's Range||23.51 - 24.00|
|52 Week Range||18.91 - 26.84|
|Beta (5Y Monthly)||0.48|
|PE Ratio (TTM)||10.00|
|Forward Dividend & Yield||1.31 (5.58%)|
|Ex-Dividend Date||Mar 15, 2020|
|1y Target Est||N/A|
The real estate sector includes companies that own, develop, and manage residential, commercial, and industrial properties. Each of these three real estate segments includes publicly traded real estate investment trusts (REITs).
When stocks go from setting all-time highs to tumbling 20% into a bear market in only three weeks, there are precious few places for equity investors to hide. But that doesn't mean defensive, low-volatility stocks aren't doing their jobs.Investment professionals helping people construct a diversified portfolio always harp on the need for stocks that will hold up better in hard times. Well, hard times are here, and so it's time to see exactly how much defense the top performing defensive stocks are actually providing.We screened the S&P; 500 for stocks in classically defensive sectors: consumer staples, utilities, health care and real estate. Next we limited ourselves to low-volatility stocks with a "beta" of less than 1.0. Beta is a measure of volatility that indicates how closely a stock's price movement correlates with a benchmark.For example, the S&P; 500 has a beta of 1.0. Any stock that has a beta less than 1.0 can be said to be less volatile than the broader market. What this means in practice is that low-beta stocks tend to lag the broader market when stocks are going up, but - critically - they also hold up better when the S&P; 500 is in decline.Recent market carnage means it's time for defensive, low-beta stocks to shine. Even if they lose value in a selloff, they should lose less value than the broader market. And if they have above-average dividends that further soften losses, all the better.Have a look at the 12 best-performing low-volatility stocks in this market crash so far. SEE ALSO: 64 Dividend Stocks You Can Count On in 2020
Coronavirus is probably the 1 concern in investors' minds right now. It should be. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW. We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […]
Digital Realty Trust (DLR) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Some short-seller favorites this week as the U.S. stock market nosedived on coronavirus fears looked counter-intuitive because the companies might benefit from the crisis, notably 3M Co, Facebook Inc and Alphabet Inc, according to S3 Partners. Short sellers built their largest dollar bets in biopharmaceutical company Abbvie this week to Thursday, according to S3, but even more notable was the popularity of 3M, which makes everything from Post-it notes to protective masks. Although mask demand surged as people looked frantically for protection against infection from the coronavirus, 3M saw the eighth biggest increase in the dollar amount of its shares sold short this week, with an additional $245.75 million more of its shares borrowed to sell, the firm's data showed.
Italian IT shop owner Simone Merlini joined a 2 p.m. call on Wednesday to do something that sounded fairly straightforward: demo three Amazon.com Inc cloud services to a new client. The intercontinental spread of a novel coronavirus in recent weeks has many businesses rushing to cloud computing, particularly work-from-home software. It is spreading thin IT consultancies that install those systems, such as Merlini's 35-person shop, beSharp near Milan, and is also spawning extraordinary measures at the data centers that make up the "cloud."
Digital Realty's (DLR) latest facility launch comes as part of the company's effort to capitalize on the multibillion-euro technology boom that Dublin is set to experience marching ahead.
As the stock market tumbles and Treasury yields sink to record lows on fears of the economic impact of the coronavirus outbreak, BofA Securities provided its clients with a list of the most defensive REITs with the highest yields to help provide some protection.
While the economy is booming, there are some warnings signs starting to flash. Hedge fund manager Ken Griffin – who started trading at age 19, and now at 51 has amassed a fortune worth $15 billion – spoke about some of the near- and long-term risks in a recent interview.Griffin sees inflation as a danger in the longer term, mostly because the financial experts lack tools to determine when inflationary trends are starting. Griffin recounts how his firm’s best analysts were caught flat-footed in 2018 when the Fed started raising rates. Regarding the lack of accurate predictive foresight, Griffin says, “If there were inflation, the markets are utterly and completely unprepared for that.”But inflation, being invisible for now, is a long-term worry. Griffin sees the coronavirus outbreak has a larger threat, at least for the present. Griffin notes that a number of major companies – Apple is a particularly good example – have already announced lower Q4 and Q1 earnings, disrupted supply chains, and even store closings in response to the viral epidemic as it expands out of China. Griffin describes the epidemic as “probably the most concrete short-run risk we see in the financial markets globally.”The coronavirus is even impacting diplomacy. Griffin points out that specific terms of the US-China Phase 1 trade agreement have not yet begun implementation. The agreement puts an obligation on China to increase imports of US products on the order of $200 billion for the next two years – but that is on hold with large parts of China paralyzed by quarantines and global trade and travel patterns facing growing disruption.So, it may be interesting to see which stocks Griffin is willing to buy, given his view of the risks ahead. A look at the most recent 13F filing by Citadel, his hedge fund, reveals three new positions that TipRanks’ Stock Screener reveals as “strong buys.” Let's take a closer look.NexTier Oilfield Solutions (NEX)The first of Griffin’s new positions, we’ll look at is NexTier, a player in the oil field support services sector. Companies like NexTier don’t actually drill for oil, but they provide the support that the exploration and drilling operators need get the oil out of the ground. Without this support – the rig services, well completion, pumps and piping for fracking operations, and fluid management and disposal – the great oil fracking boom that has helped to power the US economy over the past 15 years could not have occurred.NEX is a new ticker in the market, formed during the third quarter last year when Keane Group and C&J Energy Services merged. The name change to NexTier reflects that the transaction was a merger of equals. NEX inherited the performance legacy of Keane, and the combined company reported Q3 earnings and revenues above the forecasts. It was the second quarter in a row that the company beat expectations. Looking ahead, the company will be reporting Q4 results on March 10, and is guiding for a net loss of 2 cents per share. The company is also guiding revenue in the $640 to $660 million range, slightly higher than previous guidance.So, we have a well-positioned services company in the oil industry – and Griffin’s fund bought up 6.169 million shares. That purchase represents a new stake for Citadel, and it’s worth over $30 million dollars at today’s prices.Conventional wisdom says the move is worth it. Sean Meakim, reviewing the stock for JPMorgan, is even more bullish. He writes, “We view NexTier as a leader in the industry in terms of driving technology improvements, and think it can continue to make strides in 2020to offset the macro headwinds. We model NEX delivering FCF of ~$50mm in 4Q19, sufficient to provide fuel for the company’s $100mm capital distribution plan…”Meakim puts a $9 price target on NEX shares, suggesting room for an impressive 84% upside potential. (To watch Meakim’s track record, click here)Overall, NexTier has a Strong Buy rating from the analyst consensus, based on 4 Buys and 1 Hold. The average price target of $7.90 implies an upside of 74% for the coming year. (See NexTier stock analysis at TipRanks)Aon Plc. (AON)Next on our list of new Citadel positions is Aon, a $50 billion player in the professional services and risk management industry. Aon is known as a major insurance broker, and works with large-scale clients to negotiate and place insurance policies, advise on health and other benefits, organize retirement compensation schemes, and even outsource human resources.Aon’s revenues and stock performance have been on an upward trajectory over the past year. In Q4 2019, the company reported $2.89 billion in total revenue, in line with the forecast and the year-ago number by 4%. EPS, at $2.53, was 1.6% higher than expected and most impressive 74% above the Q4 2018 figure.Share gains have been impressive, too. AON is up over 30% in the past 12 months. Complementing the share gains, AON also offers a modest dividend. At 0.79%, the yield is nothing to write home about, the share price is high enough that the annualized payment is $1.76 per share. It’s small addition for investors to count among the gains.Griffin clearly is impressed by the prospective gains here. His fund snapped up over 350,000 shares of Aon, which are now worth $77.9 million.Covering AON for Wells Fargo, analyst Elyse Greenspan writes, “We think AON is positioned to outperform as a stand-alone company or if they acquire WLTW. We believe a stand-alone AON is positioned to see industry-leading organic revenue growth and has several tailwinds to its FCF in 2020. If there is a deal, it would likely be because AON believes they can pull a healthy level of expenses out of WLTW without significant revenue disynergies. Recall AON and WLTW entered into deal negotiations last year that were called off in March 2019 and the one-year stand still on discussions ends on 3/6/20. Further, AON’s CEO has been an expense master during his tenure at AON and has been able to consistently pull expenses out of the company."Greenspan's $265 price target suggests an upside potential for AON of 20%. More importantly, she upgraded her stance on the stock, shifting from Neutral to Buy. (To watch Greenspan’s track record, click here)Aon’s Strong Buy consensus rating is supported by 5 analyst reviews, including 4 Buys and just 1 Hold. The stock is selling for $237.25, and the average price target of $237.25 indicates room for a modest 7% upside. (See Aon stock analysis at TipRanks)Digital Realty Trust (DLR)The final stock on our list is a Real Estate Investment Trust (REIT), specializing in data center and other tech-related properties. DLR owns properties around the world, in 15 countries, and boasts over 210 operating data centers. Like all REITs, Digital is required by US tax law to pay back the bulk of its profits to investors.Those profits can be substantial, as the company brings in over $3 billion annually on the top line. Earnings were robust in Q4 2019, at $1.62 per share. Estimated EPS for Q1 2020, to be reported in April, is $1.59.With robust earnings, DLR has no problem maintaining its dividend payments. Most REITs pay out strong dividends, as it is an easy way to remain in compliance with tax code regulations on profit sharing. DLR offers a 3.3% dividend yield, paid out quarterly at $1.08 per share. The payout ratio, which compares the quarterly dividend payment to the quarterly earnings, is 66.7%, indicating that the company can easily sustain the dividend given current income levels. DLR has raised its payment in each of the last three years.Strong earnings, a reliable dividend, and a pattern of long-term gains (this stock is up 34% over the last three years) are exactly the features that will attract attention from a hedge fund. So, it should be no surprise that Griffin’s fund picked up over 249,000 shares of DLR in Q4. Like the other stocks in this article, this is a new position for Griffin. At current prices, the fund’s stake in Digital Realty is worth $35.6 million.Weighing in on the stock for SunTrust Robinson, 5-star analyst Greg Miller is upbeat, saying, "We believe investors will continue to respond favorably to the execution of the business model. Sequentially higher 4Q signed leasing is not typical, underscoring DLR’s momentum… we believe the stock will continue to move higher."Miller’s Buy rating is supported by his $152 price target, which suggests room for 16% upside growth to the stock. (To watch Miller’s track record, click here)Wall Street’s analysts have given DLR 6 Buys and 2 Holds recently, making the consensus view a Strong Buy. The average price target is $137, which implies a small premium of 5% from the current share price of $130.38. (See Digital Realty stock analysis at TipRanks)
Shares of real estate investment trusts (REITs) suffered a broad selloff in afternoon trading Tuesday, despite another tumble in the 10-year Treasury yield to a record low. REITs tend to outperform when Treasurys rally and yields fall, as their relatively high dividend yields make them more attractive in a lower yield environment, and their usual relative price stability makes tends to make them attractive in a volatile market environment. The SPDR Real Estate Select Sector ETF dropped 2.4%, with 30 of 31 components losing ground, just a little better than the S&P 500's 2.8% decline. The REIT ETF's yield is 2.93% while the implied yield for the S&P 500 is 1.94%. Meanwhile, the 10-year Treasury yield fell 6.0 basis points to a record low of 1.317%. Within the REIT sector tracker, the biggest loser and most active stock was Host Hotels & Resorts Inc. , which slumped 5.8%. Among other more-active components, shares of Ventas Inc. declined 5.3%, Digital Realty Trust Inc. slipped 0.2% and Simon Property Group Inc. gave up 3.7%.
Shares of real estate investment trusts rallied again Friday, as another drop in Treasury yields helped spark a broad rally in the high-yielding sector. The SPDR Real Estate Select Sector ETF rose 0.8%, with 25 of 31 equity components gaining ground. The ETF (XLRE) was on track for a 7th-straight gain, and 5th-straight record close. The win streak would be the longest since the 7-day up stretch ending Jan. 31, 2019. The REIT sector is viewed by many as a bond proxy, given its relatively stable equity characteristics and high dividend yield. The XLRE's dividend yield is 2.84%, while the yield on the 10-year Treasury note was 1.581%, down 3.6 basis points from Thursday. The 10-year yield has lost 33.8 basis points since the end of 2019, and was approaching the 3-year low of 1.459% hit on Sept. 4, 2019. Meanwhile, the implied yield on the S&P 500 was 1.79%. Among the XLRE's biggest gainers Friday, shares of Digital Realty Trust Inc. rose 3.1%, Public Storage advanced 1.8% and Extra Space Storage Inc. tacked on 1.7%.
Digital Realty's (DLR) Q4 performance reflects solid demand for data-center facilities. The company remains well poised to bank on it through accretive acquisitions and development efforts.
Digital Realty Trust (DLR) delivered FFO and revenue surprises of 2.53% and -0.82%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
Bill Stein has been the CEO of Digital Realty Trust, Inc. (NYSE:DLR) since 2014. First, this article will compare CEO...
It was a good run, but the owner of a private tolled highway is no longer the top real estate taxpayer in Loudoun County. You can probably guess what has replaced the 14.3-mile Dulles Greenway in the category of most valuable property: data centers. According to the county’s recently released comprehensive annual financial report for fiscal year 2019, property owned by Digital Loudoun 3 LLC, an affiliate of Digital Realty Trust Inc. (NYSE: DLR), has an assessed value of $439.7 million.
When we invest, we're generally looking for stocks that outperform the market average. And the truth is, you can make...
With the first-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the second quarter. One of these stocks was Digital Realty Trust, Inc. (NYSE:DLR). Digital Realty Trust, Inc. (NYSE:DLR) […]
Using recent actions and grades from TheStreet's Quant Ratings and layering on technical analysis of the charts of those stocks, Trifecta Stocks identifies five names each Friday that look bearish. While we will not be weighing in with fundamental analysis we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names. Core-Mark Holding Co. recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
Digital Realty (NYSE: DLR), a leading global provider of data center, colocation and interconnection solutions, announced today it has earned the National Association of Real Estate Investments Trusts (Nareit) "Leader in the Light" award for data center sustainability for the third consecutive year. The award, presented at the annual REITworld conference in Los Angeles, honors Nareit member companies that have produced superior, measurable results from the implementation of sustainable business practices.
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...
Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by more than 10 percentage points since the end of the third quarter of 2018 as investors first worried over the possible ramifications of rising interest rates and the escalation of the trade war with China. The hedge funds and institutional investors we track […]
It's far from a regular occurrence in D.C.'s commercial real estate market, but a capital markets team from commercial real estate services firm Savills recently brokered the sale of a vacant downtown restaurant space from contract to closing in just two days as the final hours of the District's 2019 fiscal year ticked down. In the case of 405 Eighth St. NW, Savills Executive Managing Director Vernon Knarr and his teammates made one final push of buyer and seller to try to come together on the sale price, and on Sept. 30, the $3.8 million transaction was recorded with the D.C. Recorder of Deeds. "We had the buyer, who has been interested in this property for a while, and I guess it was — not the luck of the draw — but I went back to the buyer one last time to see if he would come down and I talked to the seller to see if he had any flexibility," Knarr said.