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The stock market’s strong run over the past few years brought attention to high-flying growth stocks, usually from the technology sector, that were consistently outpacing the market. However, fresh volatility within the last two months has shifted the focus back towards other investment strategies, and now it might be time for investors to check out things like real estate investment trusts, or REITs.
REITs are companies that own, operate, or finance real estate properties that produce income, such as apartment complexes or retail locations. These companies are heavily regulated and must meet a number of qualifications to be classified as a REIT, but they do offer investors a few distinct advantages.
First of all, real estate can be a very profitable investment sector when certain economic conditions are present. What’s more, REITs must pay at least 90% of their taxable income in dividends to shareholders, so they are a great option for income investors looking for steady payouts.
Luckily for Zacks readers, the proven Zacks Rank—which emphasizes earnings estimates and estimate revisions—works with REITs just as it would with any other company. The strongest REITs are going to be those with improving outlooks and great Zacks Ranks.
With that said, check out the REITs that are model says are impressive options right now:
Headquartered in Salt Lake City, Extra Space Storage is a self-managed REIT that owns and operates many self-storage properties, including boat storage, RV storage, and business storages units. The company is the second-largest owner of self-storage properties in the U.S.
EXT is currently holding a Zacks Rank #2 (Buy). The company has witnessed eight positive earnings estimate revisions from analysts within the past 60 days, and its full-year Zacks Consensus Estimate for EPS has gained ten cents in that time. The stock has a beta of just 0.21, which should make it more attractive during market volatility, and EPS and revenue growth is expected to be respectable in the current fiscal year.
2. Innovative Industrial Properties, Inc. (IIPR - Free Report)
Innovative Industrial Properties is a REIT focused on the acquisition, ownership and management of specialized industrial properties for medical-use cannabis facilities. Weed stocks can be unpredictable, but IIPR has generated some solid momentum over the past two weeks after the company’s recent acquisition of an 89,000-square-foot facility in Pennsylvania.
IIPR is currently sporting a Zacks Rank #1 (Strong Buy). Analyst sentiment for the company is warming, and the Zacks Consensus Estimate for its annual earnings has increased six cents over the last 60 days. Earnings growth is now expected to touch 106% in the current year and an additional 89% in 2019. The stock has surged more than 20% in the past month and could be an interesting momentum pick as it looks to test its 52-week high again.
3. Jernigan Capital, Inc.
Jernigan Capital is a commercial real estate company which provides financing to private developers, owners, and operators of self-storage facilities. The company offers solutions for the construction of self-storage facilities or self-storage redevelopment opportunities as well as for the acquisition of, refinancing of existing indebtedness on, and recapitalization of stabilized self-storage facilities.
JCAP is holding a Zacks Rank #1 (Strong Buy) right now. The stock is a hot growth option for 2018, with full-year estimates calling for earnings to improve by 135% and revenue to surge 141%. Meanwhile, the stock is trading at a dirt-cheap 6.2x forward 12-month earnings, making it a solid value play.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeneyon Twitter!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
3 Great REITs to Buy Right Now
The stock market’s strong run over the past few years brought attention to high-flying growth stocks, usually from the technology sector, that were consistently outpacing the market. However, fresh volatility within the last two months has shifted the focus back towards other investment strategies, and now it might be time for investors to check out things like real estate investment trusts, or REITs.
REITs are companies that own, operate, or finance real estate properties that produce income, such as apartment complexes or retail locations. These companies are heavily regulated and must meet a number of qualifications to be classified as a REIT, but they do offer investors a few distinct advantages.
First of all, real estate can be a very profitable investment sector when certain economic conditions are present. What’s more, REITs must pay at least 90% of their taxable income in dividends to shareholders, so they are a great option for income investors looking for steady payouts.
Luckily for Zacks readers, the proven Zacks Rank—which emphasizes earnings estimates and estimate revisions—works with REITs just as it would with any other company. The strongest REITs are going to be those with improving outlooks and great Zacks Ranks.
With that said, check out the REITs that are model says are impressive options right now:
1. Extra Space Storage Inc. (EXR - Free Report)
Headquartered in Salt Lake City, Extra Space Storage is a self-managed REIT that owns and operates many self-storage properties, including boat storage, RV storage, and business storages units. The company is the second-largest owner of self-storage properties in the U.S.
EXT is currently holding a Zacks Rank #2 (Buy). The company has witnessed eight positive earnings estimate revisions from analysts within the past 60 days, and its full-year Zacks Consensus Estimate for EPS has gained ten cents in that time. The stock has a beta of just 0.21, which should make it more attractive during market volatility, and EPS and revenue growth is expected to be respectable in the current fiscal year.
2. Innovative Industrial Properties, Inc. (IIPR - Free Report)
Innovative Industrial Properties is a REIT focused on the acquisition, ownership and management of specialized industrial properties for medical-use cannabis facilities. Weed stocks can be unpredictable, but IIPR has generated some solid momentum over the past two weeks after the company’s recent acquisition of an 89,000-square-foot facility in Pennsylvania.
IIPR is currently sporting a Zacks Rank #1 (Strong Buy). Analyst sentiment for the company is warming, and the Zacks Consensus Estimate for its annual earnings has increased six cents over the last 60 days. Earnings growth is now expected to touch 106% in the current year and an additional 89% in 2019. The stock has surged more than 20% in the past month and could be an interesting momentum pick as it looks to test its 52-week high again.
3. Jernigan Capital, Inc.
Jernigan Capital is a commercial real estate company which provides financing to private developers, owners, and operators of self-storage facilities. The company offers solutions for the construction of self-storage facilities or self-storage redevelopment opportunities as well as for the acquisition of, refinancing of existing indebtedness on, and recapitalization of stabilized self-storage facilities.
JCAP is holding a Zacks Rank #1 (Strong Buy) right now. The stock is a hot growth option for 2018, with full-year estimates calling for earnings to improve by 135% and revenue to surge 141%. Meanwhile, the stock is trading at a dirt-cheap 6.2x forward 12-month earnings, making it a solid value play.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>