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4 REIT Stocks to Buy Amid Coronavirus-Induced Market Maelstrom
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COVID-19 led lockdowns and social distancing have severely disturbed individual lives, communities and industries around the world. With the vaccine development process still ongoing, no one knows the duration and severity to which the mayhem can go.The outbreak has disrupted supply chains of almost every business and rattled investors in recent weeks, forcing them to sell off stocks.
On Mar 20, markets faced yet another setback as three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — suffered 4.6%, 4.3% and 3.8%, respectively. The Russell 2000 tumbled 4.2%.Over the past month, the Dow, S&P 500 and Nasdaq Composite have declined 33.9%, 30.9% and 28.2%, respectively. The Russell 2000 and FTSE 100 have declined 10.4% and 4%, respectively in the said time frame.
Meanwhile the COBE VIX, a real-time indicator of the market's expectation of 30-day forward-looking volatility, closed at 66.04, significantly higher than its historical average range of 19 to 20.Notably, a VIX value higher than 30 is generally associated with large volatility arising from raised uncertainty, risk and investors’ fear. VIX jumped 181.5% over the past year, touching an all-time high of 82.69 on Mar 16.
Last week, the Fed and central banks around the world came up with unprecedented monetary stimulus to curb the impact of Covid-19 on the global economy.
The Fed lowered the target range for the federal funds rate to 0-0.25%, down from the prior range of 1-1.25%. It decided to increase its Treasury securities holdings by at least $500 billion and agency mortgage-backed securities holdings by at least $200 billion over the coming months to support markets for Treasury securities and agency mortgage-backed securities asthey are important for credit flow to households and businesses.Further, in a coordinated move with other central banks, the Fed is offering three-month credit in U.S. dollars on a regular basis and at an unusually cheap rate.
These moves, however, have failed to offset the coronavirus-induced fear of global recession and are rather being viewed as signs of panic.
REITs Still an Investment Option?
REITs, or real-estate investment trusts, source their income from the leasing properties they invest in. They are often treated as bond proxies for their high-dividend payouts and provide investors cushion against share-price volatility.Further, their dependence on debt for business should keep investors positive about their performance, thanks to lower borrowing costs driven by back-to-back rate cuts.
REITs have braced themselves up for the coronavirus-led economic uncertainty by increasing their stock of cash and cash-like assets and maintaining significant unused lines of credit.
Here’re the Picks
These stocks have growth potential for the current year and are regular dividend payers. Most importantly, each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
New Residential Investment Corp. invests in and manages residential mortgage related assets in the United States. The Zacks Consensus Estimate for its current-year earnings has moved up 3.4% over the past 30 days. Its annualized dividend of $2 a share yields 28.5% right now.
New Residential Investment Corp. Price, Consensus and EPS Surprise
ARMOUR Residential REIT, Inc. (ARR - Free Report) invests in residential mortgage-backed securities in the United States.The Zacks Consensus Estimate for its current-year earnings has risen 4.7% over the past 30 days. Its annualized dividend of $2.1 a share currently yields 26.9%.
ARMOUR Residential REIT, Inc. Price, Consensus and EPS Surprise
Chimera Investment Corporation (CIM) invests in a portfolio of mortgage assets, encompassing residential mortgage loans, commercial mortgage loans, agency and non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, and other real estate related securities. The Zacks Consensus Estimate for its current-year earnings has increased 2.9% over the past 30 days. Its annualized dividend of $2 a share currently yields 20.9%.
Chimera Investment Corporation Price, Consensus and EPS Surprise
One Liberty Properties, Inc. (OLP) acquires, owns and manages a geographically diversified portfolio of retail, restaurant, theaterindustrial, and health and fitness properties. The Zacks Consensus Estimate for its current-year earnings has risen 2.7% over the past 30 days. Its annualized dividend of $1.8 a share currently yields 11.8%.
One Liberty Properties, Inc. Price, Consensus and EPS Surprise
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
Image: Bigstock
4 REIT Stocks to Buy Amid Coronavirus-Induced Market Maelstrom
COVID-19 led lockdowns and social distancing have severely disturbed individual lives, communities and industries around the world. With the vaccine development process still ongoing, no one knows the duration and severity to which the mayhem can go.The outbreak has disrupted supply chains of almost every business and rattled investors in recent weeks, forcing them to sell off stocks.
On Mar 20, markets faced yet another setback as three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — suffered 4.6%, 4.3% and 3.8%, respectively. The Russell 2000 tumbled 4.2%.Over the past month, the Dow, S&P 500 and Nasdaq Composite have declined 33.9%, 30.9% and 28.2%, respectively. The Russell 2000 and FTSE 100 have declined 10.4% and 4%, respectively in the said time frame.
Meanwhile the COBE VIX, a real-time indicator of the market's expectation of 30-day forward-looking volatility, closed at 66.04, significantly higher than its historical average range of 19 to 20.Notably, a VIX value higher than 30 is generally associated with large volatility arising from raised uncertainty, risk and investors’ fear. VIX jumped 181.5% over the past year, touching an all-time high of 82.69 on Mar 16.
Last week, the Fed and central banks around the world came up with unprecedented monetary stimulus to curb the impact of Covid-19 on the global economy.
The Fed lowered the target range for the federal funds rate to 0-0.25%, down from the prior range of 1-1.25%. It decided to increase its Treasury securities holdings by at least $500 billion and agency mortgage-backed securities holdings by at least $200 billion over the coming months to support markets for Treasury securities and agency mortgage-backed securities asthey are important for credit flow to households and businesses.Further, in a coordinated move with other central banks, the Fed is offering three-month credit in U.S. dollars on a regular basis and at an unusually cheap rate.
These moves, however, have failed to offset the coronavirus-induced fear of global recession and are rather being viewed as signs of panic.
REITs Still an Investment Option?
REITs, or real-estate investment trusts, source their income from the leasing properties they invest in. They are often treated as bond proxies for their high-dividend payouts and provide investors cushion against share-price volatility.Further, their dependence on debt for business should keep investors positive about their performance, thanks to lower borrowing costs driven by back-to-back rate cuts.
REITs have braced themselves up for the coronavirus-led economic uncertainty by increasing their stock of cash and cash-like assets and maintaining significant unused lines of credit.
Here’re the Picks
These stocks have growth potential for the current year and are regular dividend payers. Most importantly, each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
New Residential Investment Corp. invests in and manages residential mortgage related assets in the United States. The Zacks Consensus Estimate for its current-year earnings has moved up 3.4% over the past 30 days. Its annualized dividend of $2 a share yields 28.5% right now.
New Residential Investment Corp. Price, Consensus and EPS Surprise
New Residential Investment Corp. price-consensus-eps-surprise-chart | New Residential Investment Corp. Quote
ARMOUR Residential REIT, Inc. (ARR - Free Report) invests in residential mortgage-backed securities in the United States.The Zacks Consensus Estimate for its current-year earnings has risen 4.7% over the past 30 days. Its annualized dividend of $2.1 a share currently yields 26.9%.
ARMOUR Residential REIT, Inc. Price, Consensus and EPS Surprise
ARMOUR Residential REIT, Inc. price-consensus-eps-surprise-chart | ARMOUR Residential REIT, Inc. Quote
Chimera Investment Corporation (CIM) invests in a portfolio of mortgage assets, encompassing residential mortgage loans, commercial mortgage loans, agency and non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, and other real estate related securities. The Zacks Consensus Estimate for its current-year earnings has increased 2.9% over the past 30 days. Its annualized dividend of $2 a share currently yields 20.9%.
Chimera Investment Corporation Price, Consensus and EPS Surprise
Chimera Investment Corporation price-consensus-eps-surprise-chart | Chimera Investment Corporation Quote
One Liberty Properties, Inc. (OLP) acquires, owns and manages a geographically diversified portfolio of retail, restaurant, theaterindustrial, and health and fitness properties. The Zacks Consensus Estimate for its current-year earnings has risen 2.7% over the past 30 days. Its annualized dividend of $1.8 a share currently yields 11.8%.
One Liberty Properties, Inc. Price, Consensus and EPS Surprise
One Liberty Properties, Inc. price-consensus-eps-surprise-chart | One Liberty Properties, Inc. Quote
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>