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nvestors in the real estate sector are spooked by new policies, including tariffs and a view on immigration, leading to a pullback in stock prices. The potential cost increase from trade tariffs and tightening construction labor supply contribute to higher costs for homebuilders, resulting in lower margins and EPS. However, this could be an opportunity to invest in the real estate market, which is near its bottom cycle.

    Stocks like D.R. Horton Inc., CBRE Group Inc., and American Tower Inc. are worth considering due to their different risk and return profiles. Each has a unique fundamental development and view from Wall Street analysts, making them suitable for building a diversified portfolio.

    D.R. Horton stock trades at 80% of its 52-week high, with a 20% selloff that should not be ignored. Analysts have boosted their targets, expecting a turnaround in residential construction. J.P. Morgan Chase increased its valuation from $180 to $188 per share, while Barclays reiterated an Overweight rating and $192 valuation.

    CBRE Group stock offers lower risk with high upside potential, boasting a beta of 1.3 compared to D.R. Horton's 1.7. Goldman Sachs placed a Buy rating on CBRE with a $176 valuation, requiring a 27% rally from its current price. However, CBRE operates in the commercial sector, which may take longer to recover.

    American Tower stock balances upside potential with safety, offering a beta of 0.8. Analysts expect a rebound in the mortgage market index, which could boost REITs like American Tower. Barclays placed an Overweight rating on the stock with a $251 valuation, requiring a 22.1% rally from its current price.

    These stocks offer opportunities for investors to balance risk and potential returns, making them suitable for building a diversified portfolio during uncertain times.