The first half of 2022 was a rough stretch for the stock market. The S&P 500 tumbled more than 20%, pushing down the value of most stocks. That means there are a lot more compelling values these days.
One sector that seems ripe with value right now is the real estate investment trust ( REIT ) industry. Most REITs have tumbled more than 20% this year, pushing their valuations down even though their growth prospects remain compelling. Three REITs that stand out for their value propositions are Equity Residential (NYSE: EQR) , Prologis (NYSE: PLD) , and Invitation Homes (NYSE: INVH) .
Shares of Equity Residential have fallen more than 20% this year. The residential REIT now trades at 20 times its forward funds from operations (FFO), down from more than 26 a few months ago. While that's not the cheapest valuation in the apartment REIT sector -- it's right around the industry average -- Equity Residential has the highest projected FFO growth rate. Analysts expect it to grow by 11% over the next year, above the sector's 9% average. That makes it look like a fantastic bargain these days.
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These 3 Stocks Are Exceptional Value Buys Right Now