4 REIT Plays With Beat Potential In Q2 Earnings
Zacks Investment Research | Jul 19, 2017 05:19AM ET
Huge profits and earnings surprises can lure you this earnings season. But rather than accumulating stocks later, investing in those that are yet to release their numbers and poised to beat expectations can fetch you more gains. This is because an earnings beat essentially serves as a catalyst and raises investors’ confidence in a stock. This leads to rapid price appreciation, ensuring more gains from one’s investments.
Furthermore, buying an undervalued earnings play should translate into great returns when the stock eventually trades at a higher price. This brings us to the REIT industry, which has gained just 2.2% year to date compared with the S&P 500’s return of 10%.
Admittedly, rate hike and cautious approach of investors have deterred gains from this industry so far this year. However, rather than entirely focusing on the rate factor, investors need to keep in mind that the operating performance of this special hybrid asset is highly determined by the dynamics of the individual asset categories. And a number of asset categories displayed strength in second-quarter 2017, with the economy and the job market showing signs of recovery.
Take for example the industrial and office asset categories which hogged the limelight for experiencing high demand. Going by numbers, per a Earnings ESP Filter .
Here are four REITs that have the right combination of elements to deliver an earnings beat when they release second-quarter results:
Liberty Property Trust ( .
Piedmont Office Realty Trust, Inc. (Zacks Investment Research
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