5 Best Real Estate Stocks To Buy Now

1. American Tower Corp (NYSE: AMT)

Boston-based American Tower Corp (NYSE: AMT) is a Fortune 500 company that deals in real estate services and wireless and broadcast communications infrastructure in several countries. The company owns over 170,000 communication sites all over the world.

Earlier in January,  American Tower shares rallied after it was reported that the company signed an agreement with Telefónica (NYSE:TEF) acquire Telxius Towers.

American Tower tops the list of 10 best real estate stocks to buy now, as 62 hedge funds tracked by Insider Monkey held stakes in the company as of the end of the third quarter. Here is what RiverPark Advisors said about AMT in its 2020 Q3 investor letter:

American Tower: AMT shares were a top detractor on mixed second quarter results and management’s lowered full year revenue and EBITDA guidance (the company did, however, increase its AFFO/share guidance). The company guided to slower-than-expected U.S. property revenue growth due to a push-out of T-Mobile/Sprint capital spending. We believe U.S. activity should reaccelerate in the second half of this year, driven by T-Mobile/Sprint restarting capital spending, and into 2021, with Dish starting to ramp.

Although individual quarterly activity may remain lumpy, rapidly rising global mobile data usage in the range of 30%-40% per year continues to drive robust capital investment within the wireless industry. 5G deployment and major carriers’ needs for high-quality networks are likely to drive double-digit capital spending growth in 2021 (and similar amounts for the foreseeable future), irrespective of carrier consolidation. One key forecast is that by 2023, the average U.S. consumer mobile device is expected to consume nearly 50 gigabytes of data per month, nearly four times current levels. This tailwind, combined with world class execution, should drive consistent long-term revenue, cash flow and dividend per share growth at AMT for the foreseeable future. AMT’s tower portfolio continues to grow and its capital intensity continues to decline (the company has reduced the ratio of its capital expenditures to revenue by 1/3 over the past 10 years), leading to a significant increase in free cash flow (trailing-twelve-months free cash flow was $7.5 billion, compared with 2009’s $800 million).”

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