Over time, strong earnings will usually result in an increase in a company’s stock price. But stock prices can fluctuate greatly in the days following earnings reports and may even make large upside moves if the earnings are not only good but also top Wall Street’s estimates.
Many real estate investment trust (REIT) stocks that were trounced throughout much of 2022 have shown much-improved price performance over the past two months. But analysts have been slow to upgrade the sector, citing ongoing interest-rate hikes and fears of a recession in 2023.
2022 will long be remembered as the year when real estate investment trusts (REITs) were clobbered by inflation and fears of recession. But since mid-October, many of these stocks have bounced back. Yields have risen, and many REITs have surpassed analysts’ expectations with improved third-quarter operating results.
Shopping malls and retail strip centers have been declining for many years. How many empty spaces did you see in your local mall the last time you visited? Have you seen any new malls or strip centers being constructed recently? Main streets across America have also had vacant storefronts for a long period of time.
The major real estate investment trusts (REITs) started to rally after the Oct. 13, 2022, consumer price index report from the U. S. Bureau of Labor Statistics, despite the slightly hotter-than-expected September inflation number of 8.2% year-over-year figure versus the expected 8.1% year-over-year. The previous month had come in at 8.3%.