Farley: Five REITs With Solid Foundations
It's still risky to place aggressive bets on a recovery in the residential- and commercial-building segments, but one related group is perking up nicely this summer. Real Estate Investment Trusts (REITs) have come off deep lows in recent months, with many grinding out bullish basing patterns and setting up for major breakouts later this year.
As we know, this was an extremely hot group during the real-estate bubble. It turned south along with construction stocks in early 2007, but has held up much better in the last year-and-a-half. This resilience is paying off now, with capital reentering the sector at a healthy pace in hopes the dark days has finally past.
I've scanned my databases and uncovered five REITs with excellent price patterns. None of today's list is tied to residential construction, even though I'm pleasantly surprised by the recent performance of this sub-group. It just makes sense to stick with strongest sector components, given all the economic uncertainties.
|Digital Realty Trust|
|Click here for larger image.|
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV