Sectors & IndustriesReal Estate

Best Real Estate Stocks to Buy Now (2022)

Top real estate stocks in 2022 ranked by overall Zen Score. See the best real estate stocks to buy now, according to analyst forecasts for the real estate sector.

According to Zen Score, the 3 best real estate stocks to buy right now are:

Landsea Homes (NASDAQ:LSEA) is the top real estate stock with a Zen Score of 60, which is 29 points higher than the real estate sector average of 31. It passed 20 out of 33 due diligence checks and has strong fundamentals. Landsea Homes has seen its stock lose -42.91% over the past year, underperforming other real estate stocks by -16 percentage points.

Landsea Homes has an average 1 year price target of $9.00, an upside of 78.93% from Landsea Homes's current stock price of $5.03.

Landsea Homes stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Landsea Homes, 33.33% have issued a Strong Buy rating, 0% have issued a Buy, 66.67% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Lamar Advertising Co (NASDAQ:LAMR) is the second best real estate stock with a Zen Score of 58, which is 27 points higher than the real estate sector average of 31. It passed 22 out of 38 due diligence checks and has strong fundamentals. Lamar Advertising Co has seen its stock lose -28.84% over the past year, underperforming other real estate stocks by -2 percentage points.

Lamar Advertising Co has an average 1 year price target of $109.00, an upside of 31.53% from Lamar Advertising Co's current stock price of $82.87.

Lamar Advertising Co stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Lamar Advertising Co, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Cbre Group (NYSE:CBRE) is the third best real estate stock with a Zen Score of 58, which is 27 points higher than the real estate sector average of 31. It passed 19 out of 33 due diligence checks and has strong fundamentals. Cbre Group has seen its stock lose -29.42% over the past year, underperforming other real estate stocks by -3 percentage points.

Cbre Group has an average 1 year price target of $114.67, an upside of 67.32% from Cbre Group's current stock price of $68.53.

Cbre Group stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Cbre Group, 33.33% have issued a Strong Buy rating, 66.67% have issued a Buy, 0% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 203 real estate stocks that have issued dividends in the past year, the 3 real estate stocks with the highest dividend yields are:

Presidio Property Trust (NASDAQ:SQFT) has an annual dividend yield of 23.16%, which is 16 percentage points higher than the real estate sector average of 6.9%.

Presidio Property Trust's dividend payout ratio of -64.3% indicates that its high dividend yield might not be sustainable for the long-term.

Armour Residential Reit (NYSE:ARR) has an annual dividend yield of 22.68%, which is 16 percentage points higher than the real estate sector average of 6.9%. Armour Residential Reit's dividend payout is not stable, having dropped more than 10% nine times in the last 10 years. Armour Residential Reit's dividend has not shown consistent growth over the last 10 years.

Armour Residential Reit's dividend payout ratio of -96% indicates that its high dividend yield might not be sustainable for the long-term.

Franklin Street Properties (NYSEMKT:FSP) has an annual dividend yield of 22.11%, which is 15 percentage points higher than the real estate sector average of 6.9%. Franklin Street Properties's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Franklin Street Properties's dividend has not shown consistent growth over the last 10 years.

Franklin Street Properties's dividend payout ratio of 91.8% indicates that its high dividend yield might not be sustainable for the long-term.

Real estate stocks were down -1.26% in the last day, and down -8.46% over the last week.

We couldn't find a catalyst for why real estate stocks are down.

Based on WallStreetZen's Valuation Score, the 3 most undervalued real estate stocks right now are:

Stratus Properties (NASDAQ:STRS) is the most undervalued real estate stock based on WallStreetZen's Valuation Score. Stratus Properties has a valuation score of 100, which is 63 points higher than the real estate sector average of 37. It passed 7 out of 7 valuation due diligence checks.

Stratus Properties's stock has dropped -27.26% in the past year. It has underperformed other stocks in the real estate sector by -1 percentage points.

Newmark Group (NASDAQ:NMRK) is the second most undervalued real estate stock based on WallStreetZen's Valuation Score. Newmark Group has a valuation score of 86, which is 49 points higher than the real estate sector average of 37. It passed 6 out of 7 valuation due diligence checks.

Newmark Group's stock has dropped -43.38% in the past year. It has underperformed other stocks in the real estate sector by -17 percentage points.

Landsea Homes (NASDAQ:LSEA) is the third most undervalued real estate stock based on WallStreetZen's Valuation Score. Landsea Homes has a valuation score of 86, which is 49 points higher than the real estate sector average of 37. It passed 6 out of 7 valuation due diligence checks.

Landsea Homes's stock has dropped -42.91% in the past year. It has underperformed other stocks in the real estate sector by -16 percentage points.