The small-cap company that runs an end-to-end platform for buying, selling, and renting real estate lost its way after announcing layoffs.
MarketBeat.com - MarketBeat Since its IPO in April, the company has been in a downward spiral. The broader market fell after it went public. In August, the stock tried a rally. The broader enterprise software industry, as well as real-estate stocks, such as homebuilders and real estate investment trusts, hit the skids in August of 2021.
The closing price was $2.29. After its $7.2 billion valuation at its IPO, its market cap has fallen to $989 million.
Wall Street doesn't think that the company will ever be profitable.
A failed IPO is nothing to get worked up about.
Is Compass a good indicator of what's to come for real-estate related stocks? The cost of a mortgage is expected to go up as a result of the Federal Reserve raising rates. The number of mortgage applications is down from a year ago.
Homebuilders such as D.R. Horton are slumping because of that scenario.
The rental trade is a big deal. You might think that the publicly traded operators of rental properties must be doing well, since they are sitting pretty.
Yes, in one way. Take American homes for rent Single-family homes are acquired, renovated, and leased by the company. More than 57,000 rental homes are owned by it.
American homes has seen double-digit revenue growth in the past five quarters and double-digit earnings growth in the past six Analysts expect earnings to grow for the entire year. The stock is expected to rise to $1.57 per share in the next year.
You can see a stock that is down in recent months and can't get much upside traction if you go by just the chart action. American homes is down more than 20% this year.
The picture might not be so bad. According to MarketBeat analyst data, Wall Street has a Moderate- Buy rating on the stock with a price target of $42.07.
Legacy Housing has been growing its earnings at a rapid pace. In each of the past eight quarters, per-share income has gone up. In the most recent quarter, revenue increased by 50%, coming in at $59.9 million.
Legacy is a real estate investment trust. Tax-advantaged pass-through income is one of the attractive features of a real estate investment trust.
Legacy specializes in building, selling, and financing mobile homes and tiny homes in the southeastern U.S.
According to the analyst data on the stock, analysts have a Moderate- Buy rating on the stock with a price target of $26.
Equity Residential has fallen more than 5% this week. Another example of a company that is poised to benefit from a high interest rate environment is this one.
The stock may be in oversold territory. After several quarters in a row with declines, Equity Residential has been growing revenue and earnings in the past three quarters.
It is important to note that the company has remained profitable despite the declines. Institutional investors look for that.
The broad-market trend can affect a stock's performance. As interest rates remain high and home purchases remain out of reach for many, non-traditional housing companies may be a good way to get into that market.
All Rights Reserved © 2024
