Sectors & IndustriesReal Estate

Best Real Estate Stocks to Buy Now (2023)

Top real estate stocks in 2023 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:

Medical Properties Trust (NYSE:MPW) is the top real estate stock with a Zen Score of 54, which is 27 points higher than the real estate sector average of 27. It passed 19 out of 38 due diligence checks and has strong fundamentals. Medical Properties Trust has seen its stock lose -63.09% over the past year, underperforming other real estate stocks by -35 percentage points.

Medical Properties Trust has an average 1 year price target of $15.25, an upside of 102.52% from Medical Properties Trust's current stock price of $7.53.

Medical Properties Trust stock has a consensus Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Medical Properties Trust, 41.67% have issued a Strong Buy rating, 8.33% have issued a Buy, 50% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Istar (NYSE:STAR) is the second best real estate stock with a Zen Score of 53, which is 26 points higher than the real estate sector average of 27. It passed 18 out of 38 due diligence checks and has strong fundamentals. Istar has seen its stock lose -69.49% over the past year, underperforming other real estate stocks by -41 percentage points.

Istar has an average 1 year price target of $21.00, an upside of 188.86% from Istar's current stock price of $7.27.

Istar stock has a consensus Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Istar, 0% have issued a Strong Buy rating, 100% have issued a Buy, 0% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Innovative Industrial Properties (NYSE:IIPR) is the third best real estate stock with a Zen Score of 52, which is 25 points higher than the real estate sector average of 27. It passed 19 out of 38 due diligence checks and has strong fundamentals. Innovative Industrial Properties has seen its stock lose -62.14% over the past year, underperforming other real estate stocks by -34 percentage points.

Innovative Industrial Properties has an average 1 year price target of $156.00, an upside of 105.89% from Innovative Industrial Properties's current stock price of $75.77.

Innovative Industrial Properties stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Innovative Industrial Properties, 50% have issued a Strong Buy rating, 33.33% have issued a Buy, 16.67% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 191 real estate stocks that have issued dividends in the past year, the 3 real estate stocks with the highest dividend yields are:

Istar (NYSE:STAR) has an annual dividend yield of 34.3%, which is 27 percentage points higher than the real estate sector average of 7.22%. Istar's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Istar's dividend has shown consistent growth over the last 10 years.

Istar's dividend payout ratio of 53.2% indicates that its high dividend yield is sustainable for the long-term.

Armour Residential Reit (NYSE:ARR) has an annual dividend yield of 23.51%, which is 16 percentage points higher than the real estate sector average of 7.22%. 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 -58.5% indicates that its high dividend yield might not be sustainable for the long-term.

Invesco Mortgage Capital (NYSE:IVR) has an annual dividend yield of 21.16%, which is 14 percentage points higher than the real estate sector average of 7.22%. Invesco Mortgage Capital's dividend payout is not stable, having dropped more than 10% four times in the last 10 years. Invesco Mortgage Capital's dividend has not shown consistent growth over the last 10 years.

Invesco Mortgage Capital's dividend payout ratio of -25.4% indicates that its high dividend yield might not be sustainable for the long-term.

Real estate stocks were up 2.1% in the last day, and down -1.21% over the last week.

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

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

Landsea Homes (NASDAQ:LSEA) is the most undervalued real estate stock based on WallStreetZen's Valuation Score. Landsea Homes has a valuation score of 100, which is 71 points higher than the real estate sector average of 29. It passed 7 out of 7 valuation due diligence checks.

Landsea Homes's stock has dropped -28.85% in the past year. It has underperformed other stocks in the real estate sector by -1 percentage points.

Afc Gamma (NASDAQ:AFCG) is the second most undervalued real estate stock based on WallStreetZen's Valuation Score. Afc Gamma has a valuation score of 100, which is 71 points higher than the real estate sector average of 29. It passed 7 out of 7 valuation due diligence checks.

Afc Gamma's stock has dropped -38.31% in the past year. It has underperformed other stocks in the real estate sector by -10 percentage points.

Stratus Properties (NASDAQ:STRS) is the third most undervalued real estate stock based on WallStreetZen's Valuation Score. Stratus Properties has a valuation score of 100, which is 71 points higher than the real estate sector average of 29. It passed 7 out of 7 valuation due diligence checks.

Stratus Properties's stock has dropped -55.21% in the past year. It has underperformed other stocks in the real estate sector by -27 percentage points.