After the United States elected a new president, the thought of new policies, including tariffs and views on immigration, scared off some real estate investors. The reasons why inventories in this area have fallen recently could be due to both the potential increase in costs due to trade tariffs and the reduced supply of construction labor, which will further increase costs, especially for homebuilders.
Higher costs lead to lower profitability, lower earnings per share (EPS) and, of course, lower share prices. With that in mind, investors can also look at the real estate market as a whole to potentially offset these negative impacts, realizing that it is near the bottom of its cycle and could return these stocks to their former glory when the inevitable rebound occurs.
This is why stocks are loved Dr. Horton Inc. New York Stock Exchange: FORWARD, CBRE Group Inc. New York Stock Exchange: CBREand even American Tower Inc. New York Stock Exchange: AMT deserve attention today. Each has a different risk and return profile, so investors have the opportunity to build a portfolio that can provide both potential swings and the low volatility needed in times like these. All of them are backed by fundamental events and the opinions of today’s Wall Street analysts.
Why Wall Street Expects Double-Digit Growth in DR Horton Stock Despite Pullbacks
DR Horton stock forecast for today
$185.87
Growth potential 15.47%Moderate purchase
Based on ratings from 16 analysts
| High forecast | $215.00 |
|---|---|
| Average forecast | US$185.87 |
| Low forecast | $145.00 |
DR Horton Stock Forecast Details
Analysts typically refrain from raising stocks that have recently given them bearish price action, as their reputations and careers often depend on the forecasts they make. A falling stock will often continue to fall. With DR Horton stock now trading at 80% of its 52-week high, the 20% selloff can’t be ignored.
Still, analysts were willing to raise their forecasts for the stock, knowing that a turnaround in housing construction could be around the corner. In particular, JP Morgan Chase recently raised its estimate from a previous $180 per share to $188 per share today, projecting net upside of 17.5% from today’s prices.
Then there were Barclays, who reaffirmed their “outperform” ratings on DR Horton, while maintaining the homebuilder’s valuation at $192 per share as of October 2024, allowing the shares to rise as much as 20% from then the level at which they returned today. .
But these analysts weren’t the only ones willing to express their bullish views on D.R. Horton. State Street representatives decided to increase their stake in the homebuilder by 0.1% as of November 2024. This may not seem like much in percentage terms, but it has brought their net investment to $2.5 billion, or 4% ownership in the company.
CBRE Stock Today Offers Lower Risk with High Upside Potential
CBRE Group stock forecast for today
$129.63
-5.60% MinusModerate purchase
Based on ratings from 9 analysts
| High forecast | $176.00 |
|---|---|
| Average forecast | $129.63 |
| Low forecast | $95.00 |
Details of the CBRE Group stock forecast
Investors often look to a stock’s beta to gauge potential risk. Today, CBRE stock offers a lower beta of 1.3 compared to DR Horton’s much higher beta of 1.7. It’s common knowledge that with risk comes reward, but in this case, analysts were willing to place attractive upside potential in this less risky stock.
As for CBRE, Goldman Sachs has seen fit to give CBRE shares a Buy rating, this time setting a valuation for the company at $176. To prove these new ratings correct as of December 2024, the stock would need to rise 27% from where it trades today, similar to DR Horton, only with fewer bumps along the way.
However, DR Horton is likely to benefit primarily those in a hurry as it focuses on the residential sector while CBRE is leaning towards more commercial projects. That’s where the risk premium comes from – time, but if you can afford to wait a little longer, CBRE has more upside potential with less volatility.
The bears know this, which is why they have decided to cover some of their short positions, as evidenced by the 5.8% drop in short interest rates in the last month alone. This is a sign of bearish capitulation in the face of the new growth potential attributed to this company today.
American Tower shares: balancing growth potential and security for investors
American Tower stock forecast for today
$235.54
Growth potential 12.69%Moderate purchase
Based on ratings from 13 analysts
| High forecast | $251.00 |
|---|---|
| Average forecast | $235.54 |
| Low forecast | $196.00 |
American Tower Stock Forecast Details
Last in line for gains but offering both growth potential and safety thanks to a beta of 0.8, American Tower shares are likely to benefit from a recovery in the mortgage market index, which is currently at its 1996 low. As bond yields continue to decline, so will mortgage rates, and this index will have to return to normal levels to stimulate the entire real estate industry.
This includes real estate investment trusts (REITs) such as American Tower, which unexpectedly caused Barclays analysts to give the stock an Outperform rating, this time with a $251 valuation. To reach this conclusion, American Tower shares would need to rise 22.1% from today’s levels.
The best part is that it’s a REIT? Its dividend, with the company now offering investors a payout of $6.50 per share, translates into an annualized yield of 3.1% to beat inflation as investors look to realize that double-digit growth potential in the coming months.
Before you think about Dr. Horton, you need to hear this.
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While DR Horton currently has a Moderate Buy rating among analysts, the top-rated analysts think these five stocks are Strong Buys.
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