While there is every reason to believe that the selling is closer to the end than the beginning, that isn’t much comfort for those who have seen large portfolio drops. Plus, looking at Treasury bonds and “safer” debt at current yields is almost nauseating. In a new research report, the technical team at RBC highlight stocks and sectors that are working and are clearly safer than crowded momentum stocks.
The RBC team highlighted real estate investment trusts (REITs), select food products, big pharmaceuticals and discount stores as sectors that make good sense now. We screened for stocks that growth investors looking for good portfolio additions could feel comfortable with.
This company is in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas around the country. Avalonbay Communities Inc. (NYSE: AVB) currently holds a direct or indirect ownership interest in 277 apartment communities, containing 82,487 apartment homes in 11 states and the District of Columbia, of which 26 communities were under construction and eight communities were under reconstruction.
By focusing on high-growth high demand areas in the Unites States Avalon has become on the premier apartment REIT on Wall Street. Recent research indicates that channel occupancy rates are 0.5% to 1.5% higher for the first half of 2015, despite the fact that many REITs pushing rents higher and still fairly robust development pipelines. The analysts feel that think this could drive growth acceleration, leading to strong earnings results being reported.
Avalonbay unitholders are paid a solid 2.88% distribution. The Thomson/First Call consensus price target is $193.20. The shares closed on Friday at $173.44. It is important to remember that REIT distributions may contain return of capital.