Five real-estate stocks to keep an eye on as home prices soar

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Five real-estate stocks to keep an eye on as home prices soar

 Five real-estate stocks to keep an eye on as home prices soar
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Highlights

  • The Simon Property Group, Inc’s (NYSE: SPG) total revenue was US$1.25 billion in Q2 of fiscal 2021.
  • The net revenue of Jacobs Engineering Group Inc. (NYSE: J) was US$3.0 billion in Q3 of fiscal 2021.
  • The GAAP-net income of CBRE Group Inc (NYSE: CBRE) was US$443 million in Q2, 2021.

The real estate sector has seen significant growth in recent months, fuelled by rising demand for houses. US home prices have been rising sharply due to a major supply shortage, which may have been accelerated by the displacement of people to and from the cities due to covid. 

Real estate stocks are drawing considerable attention from investors, helping the S&P 500 index register gains in recent sessions. We explore five stocks seeing traction in the market.

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Annaly Capital Management Inc (NYSE: NLY)


Annaly Capital Management Inc. is one of the leading mortgage real estate investment trusts (REIT) that invest in various assets. It is headquartered in New York.

The company’s net revenue was a loss of US$176.2 million in Q2 of FY 2021, compared to US$1.18 billion in the year-ago quarter. Its gross loss was US$237.2 million compared to gross profit of US$994.7 million in the previous year's quarter.

The operating income of the company was a loss of US$289.7 million compared to the net income of US$858.3 million in Q2 of fiscal 2020. Its net loss was US$295.6 million, compared to the net income of US$856.2 million in the year-ago quarter.

Annaly has a market cap of US$12.58 billion, a P/E Ratio of 3.79, and a forward P/E one year of 7.94. Its EPS is US$2.30. The NLY stock rose 6.08 percent YTD. The stock was priced at US$8.705 at 1:20 pm ET on September 2. The stock’s 52-week highest and lowest prices were US$9.64 and US$6.92, respectively.

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Simon Property Group, Inc. (NYSE: SPG)


Simon Property Group is an Indiana-based REIT firm that invests in malls, community centers, etc. The company’s total revenue in Q2 of FY 2021 was US$1.25 billion, compared to US$1.06 billion in the year-ago quarter.

Its net income attributable to common shareholders was US$617.25 million, or US$1.88 per share, against US$254.21 million, or US$0.83 per share, in the previous year's quarter. The company expects its net income for FY21 to be between US$5.47 and US$5.57 per diluted share.

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The company’s market cap is US$44.59 billion, the P/E Ratio is 29.63, and the forward P/E one year is 12.53. Its EPS is US$4.58. The SPG stock rose 64 percent YTD. The stock traded at US$135.655 at 2:08 pm ET on September 2. The stock’s 52-week highest and lowest prices were US$136.70 and US$59.35, respectively.

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Kimco Realty Corporation (NYSE: KIM)


Kimco is based in Jericho, New York. The company focuses on investing in shopping centers.

The stock was priced at US$22.025 at 2:18 pm ET on September 2. It has a market cap of US$13.48 billion, a P/E Ratio of 24.44, and a forward P/E one year of 16.95. Its EPS is US$0.90. The stock’s 52-week highest and lowest prices were US$22.45 and US$10.04.

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The total revenue of the company was US$289.01 million in Q2 of fiscal 2021, compared to US$238.91 million in the year-ago quarter. Its net income was US$117.11 million, or US$0.25 per diluted share, compared to US$748.11 million, or US$1.71 in the same quarter of the previous year. The company has raised its full-year FY 2021 outlook for net income available to common stockholders to a range of US$0.83 and US$0.87 from its previous forecast of US$0.66 to US$0.70.

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CBRE Group Inc (NYSE: CBRE)

CBRE (CB Richard Ellis) is a Texas-based commercial real estate company that provides various services. The stock traded at US$97.45 at 2:27 pm ET on September 2. CBRE’s market cap is US$32.68 billion, the P/E Ratio is 27.34, and the forward P/E one year is 20.16. Its EPS is US$3.56. The CBRE stock rose 63.61 percent YTD. The highest and lowest stock price of the firm for the last 52 weeks were US$98.93 and US$43.17, respectively.

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The company’s total revenue was US$6.4 billion in Q2 of FY 2021, compared to US$5.38 billion in the same quarter of the previous year. On a GAAP basis, its net income was US$443 million, or US$1.30 per share, against US$82 million, or US$0.24 per share in the year-ago period.

Its adjusted EBITDA was US$718 million compared to US$267 million in Q2 of FY 2020. Its adjusted net income was US$463 million against US$118 million in the prior year's quarter.

Source: pixabay

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Jacobs Engineering Group Inc. (NYSE: J)


Jacobs Engineering Group is based in Dallas, Texas, and provides construction and consulting services. Its clients include private companies and government bodies. The stock was priced at US$135.77 at 2:38 pm ET on September 2.

The company has a market cap of US$17.71 billion, a P/E Ratio of 38.95, and a forward P/E one year of 21.66. Its EPS is US$3.49. Jacobs' stock rose 26.96 percent YTD. The highest and lowest prices of the company for the last 52-week were US$145.97 and US$88.15, respectively.

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The company’s revenue surged 9.7 percent YoY to US$3.6 billion in Q3 of FY 2021. Its net revenue was US$3.0 billion compared to US$2.7 billion in the year-ago quarter. On a GAAP basis, its net earnings from continuing operations were US$165 million, or US$0.82 per diluted share, compared to US$227 million, or US$1.73 per diluted share in the previous year's quarter.

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Bottomline


The Federal Housing Finance Agency’s house price index jumped over 18% YoY in June. And in Q2 of 2021, it was up 17.4% compared to the corresponding period a year ago, according to new data on Tuesday. The real estate sector has been grappling with a shortage of housing units, worsened by a rising demand after the coronavirus lockdowns. Therefore, analysts expect the housing market is likely to see the growth momentum continuing in the next few months.

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