4 REITs Poised To Emerge Winners This Earnings Season
Zacks Investment Research | Feb 03, 2019 11:20PM ET
As we stand in one of the busiest weeks of the current reporting cycle, investors can be lured by profits of companies that have already released their quarterly figures. But rather than adding the stock later to your portfolio, accumulating the ones that are yet to report and poised to beat estimates, can generate higher gains. This is because an earnings beat usually serves as a catalyst, raising investors’ confidence in a stock and resulting in price appreciation.
And REITs are now back in limelight as after a soft performance in 2018, the sector emerged as a solid winner this January, with the FTSE Nareit ALL REITs Index gaining 11.42%, outperforming the S&P 500’s rally of 8.01%.
Obviously, the pause mode adopted by the Federal Reserve toward rate hike has garnered enthusiasm for this sector as REITs are a preferred choice among investors owing to their high-dividend paying nature. Moreover, an unchanged decision with respect to rate comes as a relief because REITs usually have a high dependence on debt.
Further, prospects of a number of underlying asset categories of REITs are getting a boost amid healthy economy, job-market gains and high consumer confidence that are translating into greater demand for real estate and resulting in higher occupancy levels.
Take for example the industrial real estate category which is exhibiting solid strength amid e-commerce boom and supply-chain strategy transformations. In fact, per a Zacks Investment Research
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