We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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 few 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:
Americold is a REIT focused on owning and operating temperature-controlled warehouses. It boasts the largest network of these sort of facilities in the world, making it a dominant force in global food distribution and retail industries. The company held an upsized IPO at $16 per share earlier this year and has been trending higher since then.
COLD is sporting a Zacks Rank #2 (Buy) right now. The stock is trading at about 22x forward earnings, which is a slight premium to the average of its peers but within a reasonable range considering its industry dominance. Plus, Americold offers a dividend yield of 3.5% right now.
VICI Properties is primarily engaged in owning, acquiring, and developing gaming, hospitality and entertainment destinations. The company leases gaming property and develops golf courses. In fact, VICI operates notable gaming facilities in Nevada, New Jersey, Louisiana, and more.
VICI is a Zacks Rank #2 (Buy) with great growth prospects. The company's expected long-term annual EPS growth rate sits at 6% and with this in mind, the stock looks especially cheap with a P/E of 14 and PEG of 1.4. Also, the golf course operator presents a dividend yield of 5.1%.
City Office REIT focuses on acquiring, owning, and operating office properties in the United States—primarily in mid-sized metropolitan areas in the Southern and Western U.S. The company currently owns 62 office buildings with a total of approximately 5.3 million square feet of rentable area.
CIO has added more than 22% in the past six months, and investors will hope it can break higher now that it sports a Zacks Rank #2 (Buy). It is also worth noting that, even with this momentum, CIO is trading at just 11.8x forward earnings and has a PEG of 1.3. Plus, its dividend yield of 7.3% is looking extra juicy right now.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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 few 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. Americold Realty Trust (COLD - Free Report)
Americold is a REIT focused on owning and operating temperature-controlled warehouses. It boasts the largest network of these sort of facilities in the world, making it a dominant force in global food distribution and retail industries. The company held an upsized IPO at $16 per share earlier this year and has been trending higher since then.
COLD is sporting a Zacks Rank #2 (Buy) right now. The stock is trading at about 22x forward earnings, which is a slight premium to the average of its peers but within a reasonable range considering its industry dominance. Plus, Americold offers a dividend yield of 3.5% right now.
2. VICI Properties Inc. (VICI - Free Report)
VICI Properties is primarily engaged in owning, acquiring, and developing gaming, hospitality and entertainment destinations. The company leases gaming property and develops golf courses. In fact, VICI operates notable gaming facilities in Nevada, New Jersey, Louisiana, and more.
VICI is a Zacks Rank #2 (Buy) with great growth prospects. The company's expected long-term annual EPS growth rate sits at 6% and with this in mind, the stock looks especially cheap with a P/E of 14 and PEG of 1.4. Also, the golf course operator presents a dividend yield of 5.1%.
3. City Office REIT, Inc. (CIO - Free Report)
City Office REIT focuses on acquiring, owning, and operating office properties in the United States—primarily in mid-sized metropolitan areas in the Southern and Western U.S. The company currently owns 62 office buildings with a total of approximately 5.3 million square feet of rentable area.
CIO has added more than 22% in the past six months, and investors will hope it can break higher now that it sports a Zacks Rank #2 (Buy). It is also worth noting that, even with this momentum, CIO is trading at just 11.8x forward earnings and has a PEG of 1.3. Plus, its dividend yield of 7.3% is looking extra juicy right now.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>