Breakout Real Estate Stocks to Buy Now

Hassan Maishera - November 14, 2019

The US economy has experienced a fabulous 2019 so far, with several sectors performing above expectations. Thanks to ultra-low interest rates, the housing industry is outpacing expectations. Real estate stocks allow investors to buy the sector without shelling out big bucks to purchase property. Housing demand is high and supply is low, so it’s a seller’s market. That’s great news for investors.

Real estate stocks tend to be low-volatility, steady movers. If you’re looking for more speculative stock picks, be sure to check out our top cheap stock rankings:

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Latest Real Estate Market News

The United States Federal Reserve (FED) recently lowered its interest rates for the third time this year. Rates as low as 1.5% are creating more demand for mortgages and lifting the housing market.

housing chart

The real estate sector has performed well this year. Low mortgage rates helped create additional demand for new homes.

The reduced interest rates pushed U.S. mortgage applications to new highs last week, as many potential home buyers realize rates could be bottoming out. Many borrowers are rushing to take advantage of the low rates while they still can.

Mortgage applications surged by 9.6% compared to the last week of October. Also, an increasing supply of lower-end homes helped reduce the number of ‘bidding wars’ by 10%; down 39% from a year ago.

Best Real Estate Stocks to Buy Now

Real estate stocks notched positive returns this year, so far. Here are 3 of the best real estate stocks to buy now.

Kite Realty (KRG)

Kite Realty is a retail REIT company that has made significant progress over the past few months. KRG is up 28% year-to-date and still looks strong. It’s trading at $18 per share, as it recovers from its bearish trend in 2018.

Kite Realty’s stock continues to perform well despite the company’s earnings miss during the third quarter of 2019. Analysts also expect the company to underperform in the current quarter, leading to January 2020.

real estate stocks

Kite Reality already met its high-end revenue target for the year with time to spare. The firm’s third-quarter report revealed that it’s on pace to beat its target by a significant margin this year.

The company is known for owning properties in high-growth markets, which are seeing an increase in demand at the moment. In October, Kite Realty revealed that it had achieved the high end of its 2019 disposition guidance, partially due to $502 million in assets sales since the start of 2019.

With the company achieving its target two months before the end of the year, Kite Realty could be headed for a big fourth quarter.

Equinix (EQIX)

Equinix is a Real estate investment trust that’s been a solid performer since the start of the year. The stock opened the year trading at $350 per share but is up by 54% year-to-date.

Equinix’s stock closed Wednesday’s trading session up 1.79%. It could increase over the coming weeks if markets continue to rally.

The company published its quarterly earnings report on October 30th. Quarterly revenues increased by 9%, year-over-year, to reach $1.397 billion in the third quarter of 2019. Equinix’s EPS for Q3 was $1.41, which is 17% lower than the previous quarter. However, Equinix is expected to reverse the trend in the current quarter.

Equity Residential (EQR)

Equity Residential is another publicly traded REIT that is having an excellent 2019. The stock was trading at $63.76 per share at the start of the year but is up by 35% year-to-date to now trade at $84.87 per share.

Analysts expect the company to post favorable FY2019 earnings. According to analyst M. Lewis at SunTrust Banks, Equity Residential’s EPS could be $3.48, which is higher than the previous estimate of $3.43 per share.

Similarly, Jefferies Financial Group analyst J. Petersen, expects Equity’s EPS for 2019 to be $3.46. This figure is higher than their previous forecast of $3.45 per share.

More On Breakout Real Estate Stocks

Real Estate Stocks surprised many investors this year by performing better than expected. For more on real estate stocks, homebuilder stocks, and all the latest stock market news, follow The Dork on Facebook and Twitter. And don’t forget to sign up for mobile Dork Alerts to get all the latest hot stock picks, insights, and analysis delivered right to your cell.

Hassan Maishera is a cryptocurrency expert and a Stock Dork freelance contibutor.

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