Home sales continue to skyrocket as people flee big cities and states with high taxes. MDC Holdings Inc. (NYSE: MDC) is a top 15 builder in the United States based on deliveries, with approximately 8,150 homes delivered in 2020. The company is positioned in around 20 markets in nine states and targets first- and second-time move-up buyers with some entry-level exposure.
Among the nation’s largest homebuilders, it primarily builds single-family detached homes under the Richmond American Homes brand. The company also owns a financial services business that provides mortgage financing, title, insurance and closing services.
The company has subsidiaries with homebuilding operations across the country, including Arizona, California, Colorado, Florida, Maryland, Nevada, Oregon, Utah, Virginia and Washington.
Holders of MDC stock receive a solid 2.83% dividend. Raymond James has a $71 price target. The $68 consensus target is also well above Monday’s closing print of $56.51 per share.
National Retail Properties
This is one of the largest real estate investment trusts (REITs) and is a solid choice for investors looking to capitalize on retail returning to normal. National Retail Properties Inc. (NYSE: NNN) is a fully integrated REIT that acquires, owns and invests in single-tenant net-lease retail properties.
The company invests primarily in high-quality retail properties subject generally to long-term, net leases. Last week the company reported fourth-quarter adjusted funds from operations (FFO) of $0.69 per share, down from $0.71 per share in the prior-year period. Analysts polled by Capital IQ had called for $0.65. The REIT also reported revenue for the December quarter of $163.3 million, down from $173.4 million a year earlier. Wall Street was looking for $162.8 million.
Moving forward, the company said it anticipates full-year 2021 adjusted FFO in the range of $2.77 to $2.84 per share. That compares with $2.51 reported for full-year 2020 and the consensus estimate of $2.83.
National Retail Properties offers investors a very attractive 4.92% distribution. Raymond James analysts have a $48 target price. The posted consensus estimate was last seen at $42.36. The stock closed Monday trading at $43.81, after almost a 4% gain for the day.
Despite the constant drone of negative chatter about the economy and the future due to the pandemic, the reality is there are multiple successful vaccines are being rolled out at a lightning pace. While it could be a few more months before things improve substantially, the time to buy these reopening theme plays is now. Given the recent strength into a weak tape, investors look like they are steeping in now.
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