Kalkine Media explores five stocks as rental prices soar in the US

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 Kalkine Media explores five stocks as rental prices soar in the US
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  • Cintas Corporation paid a dividend of US$ 1.15.
  • McGrath RentCorp posted total revenue of US$ 17.8 million in Q2 2022.
  • America First Multifamily Investors has a market cap of US$ 427.147 million. 

Amid the high inflation and a US stock market under the grip of a fear of an impending recession, the US rental inflation peaked in August by 0.7 per cent, the highest monthly surge since 1991.

The Labor Department data released recently revealed that the increase in August pushed the YTD shelter inflation to 6.3 per cent. Rental prices surged last year, but the latest report revealed that rents gained the most in the consumer price index (CPI) in the previous 30 years. Rents added to the price increase in the report for last month, along with food and medical care.

Some of the US rental stocks include Cintas Corporation (NASDAQ: CTAS), McGrath RentCorp (NASDAQ: MGRC), America First Multifamily Investors (NASDAQ: ATAX), Public Storage (NYSE: PSA), AvalonBay Communities (NYSE: AVB).

Here, we take a look at the five rental stocks curated by Kalkine Media®:

Cintas Corporation (NASDAQ: CTAS)

Cintas Corporation is a US company based in Mason, Ohio, providing businesses with various products and services. It is a US$ 41.01 billion market cap company.

Cintas reported total current assets of US$ 2.7 billion in its fourth-quarter fiscal 2022 results. In the same quarter in 2021, total assets were US$ 2.9 billion.

In the quarter that ended May 31, 2022, Cintas Corporation registered a revenue of US$ 2.074 billion, which was 13 per cent up compared to US$ 1.8 billion in the year-ago quarter.

The diluted income per share for Q4 2022 was US$ 2.81, a 13.8 increase from US$ 2.47 registered in the fourth quarter of 2021.

There was a free cash flow of US$ 475.8 million at the end of Q4, 2022, relative to US$ 412.9 million in the year-ago period. Cintas Corporation distributed a quarterly dividend of US$ 1.15 per share.

McGrath RentCorp (NASDAQ: MGRC)

McGrath RentCorp is a rental company based in Livermore, California, with four business segments. Founded in 1979, McGrath rents and sells modular buildings for both temporary and permanent requirements.

Most of the revenue of the US$ 2.089 billion market cap company comes from the rental of its equipment on operating leases.

The business-to-business rental provider McGrath RentCorp pays a quarterly dividend of US$ 0.455 per share.

For the second quarter of fiscal 2022, McGrath RentCorp reported growth of over 20 per cent in total revenue at US$ 177.03 million compared to the year-ago quarter’s revenue of US$ 146.4 million.

The company’s net income for the quarter that ended June 30, 2022, was US$ 26.137 million, relative to US$ 20.608 million in the corresponding quarter of the previous year.

The MGRC stock gained over 12 per cent in the present quarter, rising over six per cent year-to-date (YTD). 

America First Multifamily Investors, (NASDAQ: ATAX)

America First Multifamily Investors is a US-based company that acquires, holds, sells, and deals with a portfolio of mortgage revenue bonds.

A major share of its revenue comes from the Mortgage Revenue Bond Investments segment issued to private and commercial properties.

The US$ 427.147 million market cap company distributed a quarterly dividend of US$ 0.37 per share, which is next payable on October 31, 2022.

It earned a revenue of US$ 17.23 million in the three months that ended June 30, 2022, compared to US$ 16.5 million in the same period in 2021.

America First Multifamily Investors’ net income in the second quarter of 2022 soared by over 71 per cent to US$ 17.7 million versus US$ 10.3 million in the year-ago quarter.

The Relative Strength Index (RSI) value of the ATAX stock shown by Refinitiv on September 15, 2022, was 55.25, which points toward a stable market condition.

Market cap of CTAS, MGRC, ATAX, PSA, AVBSource: ©Kalkine Media®; © Canva via

Public Storage (NYSE: PSA)

Public Storage is a global US self-storage company headquartered in Glendale, California. It is the largest self-storage service company in the US.

The US$ 56.99 billion market cap company Public Storage’s net income allocated to common shareholders was US$ 603.4 million, or US$ 3.42 per diluted common share. In the corresponding quarter in 2021, the net income was US$ 346.2 million or $1.97 per diluted common share.

Its total revenue in the three months ended June 30, 2022, was US$ 788.93 million, an increase of 15.9 per cent compared to US$ 680.6 million in the same period in 2021.

The PSA stock rose by over eight per cent in the current quarter while projecting growth of over six months on a yearly basis.

Public Storage distributed a dividend of US$ 2. The quarterly dividend is scheduled to be released on September 29, 2022. 

AvalonBay Communities (NYSE: AVB)

AvalonBay Communities is a US real estate investment with a portfolio of 275 apartment communities with over 75,000 units. AvalonBay Communities has a market cap of US$ 28.7 billion and paid a quarterly dividend of US$ 1.59.

For the second quarter of 2022, AvalonBay’s same-store total revenue saw a jump of US$ 65,965,000 or 13.1 per cent to US$ 568,176,000.

The company said that during the reported quarter, 2022, it owned 16 established development communities under production, likely to include 4,919 home apartments and 56,000 square feet of commercial space, incurring a cost of US$ 2.069 billion for the project.

The AVB stock had an RSI value of 45.60, as shown by Refinitiv on September 15, 2022. It indicates that the stock may be currently slightly volatile at the moment.

Bottom line:

Investing during market volatility and a bearish trend is risky. Investors could opt for long-term strategies until the current storm in the stock market settles down. Due to a slew of macroeconomic headwinds, the stock market has been turbulent. Traders should pick their stocks with sufficient analysis and consider the fundamentals of the stocks.


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