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e've compiled a list of the 10 best real estate and realty stocks to buy according to hedge funds, with Prologis, Inc. (NYSE:PLD) being one of them. In this article, we'll examine where PLD stands against other real estate and realty stocks.
The US housing market is facing challenges due to a shortage of homes and rising prices. Trump's plan to deport immigrants could exacerbate the issue by reducing the labor supply needed for new homebuilding. However, economists believe that cutting regulations and permit requirements might lower homebuilding costs but won't solve the entire housing crisis.
Mortgage rates are tied to 10-year Treasury bond yields, which tend to grow with investors forecasting stronger economic growth and higher inflation. Following Trump's victory, mortgage rates briefly rose to 6.98%. Economists believe that Trump's policies could lead to a surge in mortgage rates due to increased inflation and government debt.
Doug Bauer, CEO of Tri Pointe Homes, sees the lower corporate tax and easing of regulations for banks as positives for the US housing market. He believes that the core issue remains supply, and a reduction in interest rates would unlock the resale market. Ivy Zelman, CEO of Zelman and Associates, also thinks that cities and municipalities could partner with local builders to utilize land for affordable housing.
To compile our list of the 10 best real estate and realty stocks to buy according to hedge funds, we used a stock screener to make an extended list of relevant companies with high market caps. We then shortlisted the top 10 stocks with the highest number of hedge fund holders.
Prologis, Inc. (NYSE:PLD) is a global leader in logistics real estate, leasing modern facilities to over 6,700 customers across two categories. The firm has a strong global standing, with 2.8% of the global GDP flowing through its distribution centers annually. PLD owns or has investments in properties and development projects totaling nearly 1.2 billion square feet in 20 countries.
As of Q3, Prologis reported core funds from operations (Core FFO) per diluted share of $1.43, up 10.0% year-over-year. Net earnings per diluted share were $1.08 and increased 35% compared to the prior-year period. PLD is a premier global logistic real estate company with a global scale, expertise, and an unparalleled portfolio.
As of Q3, the stock is held by 49 hedge funds, ranking it 4th on our list of the best real estate and realty stocks to buy according to hedge funds. While we acknowledge the potential of PLD as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns within a shorter timeframe.
