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The Zacks Analyst Blog Highlights: Independence Realty Trust, HCP, Omega Healthcare Investors And EPR Properties

Published 09/06/2016, 09:30 PM
Updated 07/09/2023, 06:31 AM
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For Immediate Release

Chicago, IL – September 07, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Independence Realty Trust, Inc. (IRT), HCP Inc (NYSE:HCP). (HCP), Omega Healthcare Investors Inc. ( OHI) and EPR Properties (EPR).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday’s Analyst Blog:

REITs Get Own Identity: 4 Stocks to Bet On

Real estate investment trusts (REITs) have carved a niche for themselves and earned their own sector on the S&P 500 index after the market close (ET) on Aug 31, 2016. In fact, after separating from the financial sector, REITs now represent one of 11 sectors in the group.


The creation of a separate sector by the S&P Dow Jones Indices and MSCI Inc. reflects the prominence that real estate is gaining in the global economy. Moreover, the move is expected to draw in billions into REITs as investment managers will realign their portfolio strategies to bet more on the less volatile sector. So, valuations are expected to get a push.

Notably, this new sector includes equity REITs, while mortgage REITs remain in the financial sector under a subindustry. Presently, there are 27 REITs in the S&P 500 and all of them are Equity REITs.

Equity REITs Outperform Broader Market

So far this year, Equity REITs have outperformed the broader market. In fact, the FTSE NAREIT All Equity REITs Index is up 13.78% this year through Sep 1, against the 7.81% rise witnessed by the S&P 500 Index.

Anticipation of a rate hike in the near term and Brexit-related concerns caused hiccups in August and pushed the FTSE NAREIT All Equity REITs Index down by 3.47% compared with just 0.1% added by the S&P 500. However, such anxieties seem to have ebbed.

This is because, so long as rate hikes are backed by a solid improvement in the economy, Equity REITs have every reason to prosper. On the one hand, job growth has been steady and consumer confidence is building up. On the other hand, economic weakness in the past reined in supply at a manageable level. Amid this, real estate landlords seem well poised for growth in occupancy and can command higher rents for their spaces.

4 REITs to Bet On

As REIT gets its new status, it is time for investors to prudently pick names from the space. To zero in on REIT stocks, there is nothing safer than depending on the Zacks Stock Ranking system. Here, we shortlist 4 REIT stocks with a solid Zacks Rank #2 (Buy) and guaranteed gains. Also, these have solid dividend yields.

Independence Realty Trust, Inc. (IRT) is focused on acquiring and owning well-located garden-style and mid-rise apartment properties. The company is based in the United States.

The stock has a dividend yield of 7.5%. Its current cash flow growth is 283.26% against the industry average of 34.38%. Further, projected sales growth is 40.43% against the industry average of 6.48%.

INDEP REALTY TR Price | INDEP REALTY TR Quote

HCP Inc. (HCP) invests in health care related real estate located throughout the United States, including senior housing, post-acute/skilled nursing, life science, medical office, and hospitals.

HCP has a dividend yield of 5.89%. The company stands to gain from its diverse portfolio, rising healthcare spending and an aging population. The stock has witnessed solid estimate revisions over the past one month.

HCP INC Price | HCP INC Quote

Omega Healthcare Investors Inc. (OHI) invests in income-producing health care facilities, principally long-term care facilities, with the objective of profitable growth and further diversification of the investment portfolio. The company is based in Hunt Valley, MD.

The dividend yield of the company is 6.55%. The stock enjoys a current cash flow growth of 31.66%, which is well ahead of the industry average of 15.84%. Also, projected sales growth is 18.84% against the industry average of 6.14%, which is encouraging.

OMEGA HLTHCARE Price | OMEGA HLTHCARE Quote

EPR Properties (EPR), based in Kansas City, MO, is a specialty real estate investment trust that invests in three primary segments: Entertainment, Recreation and Education. Its properties include megaplex theatres, entertainment retail centers, and destination recreational and specialty properties.

The company’s current dividend payout yields 4.83%. Its current cash flow growth is 17.09% against the industry average of 9.42%. Further, projected sales growth is 20.71% against the industry average of 1.67%.

EPR PROPERTIES Price | EPR PROPERTIES Quote

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Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.



INDEP REALTY TR (IRT): Free Stock Analysis Report

HCP INC (HCP): Free Stock Analysis Report

OMEGA HLTHCARE (OHI): Free Stock Analysis Report

EPR PROPERTIES (EPR): Free Stock Analysis Report

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