10 Best Residential Real Estate Stocks to Buy

1. AvalonBay Communities, Inc. (NYSE:AVB)

Number of Hedge Fund Holders: 42

Value of Hedge Fund Holdings: $699,292,000

AvalonBay Communities, Inc. (NYSE:AVB) is a multifamily REIT with 30 years of experience in developing, maintaining, and managing apartment units. The apartments span across 12 American states and Washington DC.

In Q1 2024, AvalonBay Communities, Inc. (NYSE:AVB) recorded core funds from operations growth of 5.1%. This was 350 basis points higher than the company’s previous outlook. Furthermore, the same-store revenue growth rose by 4.2%, which was 90 basis points higher than the previous forecast.

AvalonBay Communities, Inc. (NYSE:AVB) also shared that its developments and lease-ups are experiencing strong absorption rates and recording rents and returns above pro forma expectations.

The average price target for AvalonBay Communities, Inc. (NYSE:AVB) is $207.5, as per the projections of 14 analysts from Wall Street over the past 3 months. Among these, the highest price target is $230, while the lowest forecast stands at $194. On average, this implies a 5.2% upside from the last stock price of $197.2.

At the end of Q1 2024, 42 hedge funds reported owning a stake in AvalonBay Communities, Inc. (NYSE:AVB). Citadel Investment Group was the leading investor in the company, with a stake worth over $141 million.

While we acknowledge the potential of AVB as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AVB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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