12 Best Depressed Stocks to Invest in Now

10) American Homes 4 Rent (NYSE:AMH)

52-week Low: $33.75

Price as of 24 January: $34.60

Number of Hedge Fund Holders: 30

American Homes 4 Rent (NYSE:AMH) is a leading large-scale integrated owner, operator, and developer of single-family rental homes. The company continues to navigate a tough business environment amidst shifting demand dynamics and increasing competition. The increased competition is mainly from homebuilders who are entering the single-family rental market. That being said, Morgan Stanley analyst Adam Kramer upgraded the shares of American Homes 4 Rent (NYSE:AMH) from “Equal-weight” to “Overweight,” raising the target price from $39 to $40.00.

As per the analyst, American Homes 4 Rent (NYSE:AMH)’s proven and steady development platform is expected to help it achieve earnings growth in the years ahead. With a portfolio of homes focused mainly on rental purposes, the company is well-placed to capitalize on the increased demand for single-family rentals due to the unaffordability of homeownership in several markets. Apart from this, elevated mortgage rates is another tailwind that can support the single-family rental market.

Furthermore, favorable demographic trends are likely to support American Homes 4 Rent (NYSE:AMH) in 2025. These trends include (but are not limited to) millennials starting families and wanting more space, and uncertainty regarding long-term housing commitments. Furthermore, the transition towards remote work resulted in increased demand for larger living spaces, supporting single-family rentals over traditional apartments. Such factors might lead to a “sticky” customer base for American Homes 4 Rent (NYSE:AMH).