Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights ACRES Commercial Realty, UDR, Broadstone Net Lease and Seabridge Gold

Read MoreHide Full Article

For Immediate Release

Chicago, IL – October 26, 2022 – 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: ACRES Commercial Realty Corp. (ACR - Free Report) , UDR, Inc. (UDR - Free Report) , Broadstone Net Lease, Inc. (BNL - Free Report) and Seabridge Gold Inc. (SA - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

4 Stocks to Gain from Stubbornly High Inflation

Consumer prices in the United States advanced to a 40-year high last month. Elevated inflation, thus, continues to squeeze household outlays and adversely impact economic growth. In fact, the core consumer price index (CPI), which eliminates food and energy prices climbed 6.6% in September from the year-ago period, its highest 12-month jump since 1982, per the U.S. Labor Department.

By the way, the CPI accelerated 8.2% last month on a year-over-year basis. This marks a slight dip from the peak of about 9% in June. Yet, it continues to hover near the highest levels since the 1980s.

To top it, wholesale prices too climbed northward despite the Federal Reserve's efforts to tame the relentless rise in prices of indispensable goods and services. The producer price index (PPI) increased 0.4% month over month in September, while the core PPI too advanced by 0.4%.

No doubt, multiple causes can be attributed to the current high inflation rate. Initially, during the pandemic, consumers were spending less and saving more. However, once the pandemic eased, consumers started to spend more. But companies couldn't fulfill such household demand amid supply chain disruptions caused due to the pandemic.

As a result, prices of a wide range of commodities and services jacked up. Additionally, geopolitical issues, including the Russia-Ukraine war coupled with a strong labor market, led to an increase in the inflation rate.

Now, high inflation has compelled the Fed to adopt aggressive monetary measures. The Fed hiked interest rates considerably to curb inflation, a move that doesn't bode well for the broader economy vis-à-vis the stock market. But it's also true that there are some stocks that actually tend to gain from high inflation.

Primarily, property prices scale upward with an increase in inflation. Moreover, as the value of the property increases, rent levied by landlords increases over time. Similarly, gold doesn't seem to lose its value amid inflationary pressures. Demand for gold, including other precious metals, improves when inflation rises.

From an investment perspective, thus, real estate can be purchased by investment in a real estate investment trust (REIT), while gold can be acquired by investments in gold mining stocks. Hence, stocks such as ACRES Commercial Realty Corp., UDR, Inc, Broadstone Net Lease, Inc. and Seabridge Gold Inc. are poised to gain from a rise in inflation. These stocks currently carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here.

ACRES Commercial Realty is a real estate investment trust primarily focused on originating, holding and managing commercial real estate mortgage loans and other commercial real estate-related debt investments. They are also a commercial real estate lender exclusively to middle market CRE lending with a focus on multifamily, student housing, hospitality, industrial and office. The company's expected earnings growth rate for the current year is 1,800%.

UDR is one of the most favorably positioned multi-family apartment REITs in the United States. The company's expected earnings growth rate for the current year is 15.4%.

Broadstone Net Lease is an internally managed REIT, based in New York. It acquires, owns and manages primarily single-tenant commercial real estate properties. The company's expected earnings growth rate for the current year is 12.2%.

Seabridge Gold engages in the acquisition and exploration of gold properties in North America. The company's Snowstorm project is located in Nevada. The company's expected earnings growth rate for the current year is 84.6%.

Why Haven't You Looked at Zacks' Top Stocks?

Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.

See Stocks 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.

Published in