REITs expected to benefit from potential interest rate cuts, with Alexander's, CareTrust, and NexPoint recommended.

From NASDAQ MarketSite.: 2024-08-23 18:25:00

In response to news of potential interest rate cuts by the Federal Reserve, market surged today. Real Estate Investment Trusts (REITs) are expected to benefit the most from rate cuts, as they heavily rely on debt for operations and property acquisition. Alexander’s, CareTrust, and NexPoint are three REITs to consider with a Zacks Rank #1 (Strong Buy).

Alexander’s, a property management company, has seen positive revisions in its earnings outlook. Stock price is expected to rise, with fiscal 2024 earnings estimates up 15% in the last month. Additionally, FY25 EPS estimates have surged 40% in the last month. The stock offers a 7.93% dividend yield.

CareTrust, specializing in healthcare facilities, has seen steady earnings growth. Annual earnings are projected to increase in FY24 and FY25. Stock has risen 30% YTD, yet maintains a reasonable earnings multiple of 19.6X and a 4.02% annual dividend yield.

NexPoint Real Estate Finance focuses on real estate loans and offers a substantial 13.24% dividend yield. The stock trades at a forward earnings multiple of 12.4X. While FY24 EPS is forecasted to dip, projections show a significant 72% increase in FY25.

Experts have identified 7 elite stocks expected to see early price increases, outperforming the market by over 2X since 1988 with an average gain of +24.0% per year. Investors are encouraged to pay attention to these hand-picked stocks for potential gains.



Read more at NASDAQ MarketSite.: 3 Highly Ranked REITs to Buy with Rate Cuts Ahead