Best-Performing Stocks in Real Estate Industry 2022
The stock market is a risky place to work, but in recent years stocks associated with the real estate industry have not been as volatile and riskier as stocks in other sectors. The real estate sector has had strong growth over the past few years, with most of the improvement coming during 2017 and 2018. In addition, there is typically a lag between when a foreclosure happens and when the homes sell.
This means that people who buy before foreclosure will still see some value soon after an event occurs. Investors are often hesitant to invest money into something that may turn out poorly, but these properties are less likely to drop in value quickly than other investments because of the lag between the sale date and foreclosure date.
Best Real Estate Stocks- Recommendations
Since there are many different types of real estate stocks, it is important to look at certain factors before making a decision. People who invest in the following stocks will be more likely to succeed.
Size of Company
Companies that have been around and have large trading value are typically better than companies that have just started or that do not trade a lot. The stocks will be less risky, which is always a positive thing when it comes to investing.
While some small businesses do succeed, the risk is often greater when investing in those over larger businesses with more experience. The products or services offered by a company can also affect its size.
Value of Assets
When a company has a lot of assets, investors can be sure that those assets are worth something. The more the assets are worth; the better it will be for the company. If there is less value in those assets, then it could mean that the company will have to liquidate its properties or other belongings in order to pay off investors.
Investors should look at both the total and liquidating values of a business’s assets to be sure that they can get their money back when they want to in order to make smart decisions.
Debt/Equity Ratio
The debt/equity ratio is another way of determining whether a stock is safe. When a company has more debt than equity, another person (investor or lender) is likely to force the company to sell off some assets in order to pay them back. This will hurt the value of the company due to these assets being sold for less than the original cost.
On the other hand, if a company has little debt and makes a lot of money, that means that those profits are also worth something. The more money there is in the business, the better it will be for investors. When there is a large amount of equity, then that means that one investor can be replaced by another without starting over from scratch.
ACR- Acres Commercial Realty Corp
- Stock price: ACR (NYSE) US$9.88
- Net profit margin: 16.38%
ACRES Commercial is currently sporting a Zacks Rank of #2 (Buy). The Zacks Consensus Estimate for ACR's full-year earnings has moved 63.5% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive. The consensus among 2 Wall Street analysts covering (NYSE: ACR) stock is to Buy ACR stock.
BKI- Black Knight, Inc.
- Stock price: BKI (NYSE) US$67.58
- Revenue: 387.2M (March 2022)
- Net income: 364.6M (March 2022)
Black Knight, Inc. is an American corporation that provides integrated technology, services, data, and analytics to the mortgage lending, servicing, and real estate industries, as well as the capital and secondary markets. The 6 analysts offering 12-month price forecasts for Black Knight Inc. have a median target of 82.50, with a high estimate of 92.00 and a low estimate of 70.00. The median estimate represents a +22.04% increase from the last price of 67.60.
STOR- Store Capital Corp
- Stock price: STOR (NYSE) US$27.11
- Revenue: 682.6 million USD (2021)
STORE Capital is a publicly-traded American real estate investment trust headquartered in Scottsdale, Arizona. It is traded on NYSE under the symbol STOR. The 12 analysts offering 12-month price forecasts for STORE Capital Corp have a median target of 32.50, with a high estimate of 37.00 and a low estimate of 28.00. The median estimate represents a +18.14% increase from the last price of 27.51. Currently, and due to its current valuation, the company is a hold. However, for long-term income-oriented investors, the company is a buy; hence, we rate STOR as a buy.
BXP- Boston Properties, Inc.
- Stock price: BXP (NYSE) US$101.09
- Revenue: 2.96 billion USD (2019)
Boston Properties, Inc. is a publicly-traded real estate investment trust that invests in office buildings in Boston, Los Angeles, New York City, San Francisco, and Washington, D.C. The financial health and growth prospects of BXP demonstrate its potential to underperform the market. It currently has a Growth Score of C. Recent price changes, and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of A.
STWD- Starwood Property Trust, Inc.
- Stock price: STWD (NYSE) US$23.18
- Revenue: 171.36M (March 2022)
The company's core business focuses on originating, acquiring, financing, and managing commercial mortgage loans and other commercial real estate debt investments. Starwood Property Trust (NYSE: STWD) pays an annual dividend of $1.92 per share and currently has a dividend yield of 8.16%. STWD has a dividend yield higher than 75% of all dividend-paying stocks, making it a leading dividend payer. The dividend payout ratio of Starwood Property Trust is 88.48%.
IHT- InnSuites Hospitality Trust
- Stock price: IHT (NYSEAMERICAN) US$3.05
- Revenue: 6 million USD (2020)
InnSuites Hospitality Trust, based in Phoenix, Arizona, is a real estate investment trust that invests in lodging. While it is formed as a real estate investment trust, it is not classified as a real estate investment trust for tax purposes. IHT has a Quality Grade of D, ranking ahead of 23.6% of graded US stocks. IHT's asset turnover comes in at 0.336 -- ranking 64th of 442 Trading stocks.