Real Estate Investing For Beginners: 11 Best Stocks To Buy

1. American Tower Corporation (NYSE:AMT)

Number of Hedge Fund Holders: 63

American Tower Corporation (NYSE:AMT) is an American real estate investment trust that provides infrastructure for modern digital communications and has a presence in 25 countries. The company is a leading independent owner, operator, and developer of multitenant communications real estate. Other than leasing space on its communications sites to tenants, the REIT offers customized services and solutions such as site acquisition, zoning and permitting, and structural analysis.

American Tower Corporation (NYSE:AMT) has served as a leader and innovator for digital connectivity. The REIT is uniquely positioned as one of the largest publicly held global real estate investment trusts. It has a solid global portfolio comprising 224,000 communications sites, including almost 43,000 properties in the US and Canada and more than 181,000 properties internationally.

The REIT benefits from the strong underlying demand for its portfolio of communications assets and has successfully continued its momentum from the start of 2024 to the second quarter. The second quarter’s strong performance was supported by over 5% Organic Tenant Billings Growth in its US & Canada segment, positive collection trends in India, and the second-highest quarter of signed new business achieved by CoreSite. This drove a 13.5% attributable AFFO growth in the quarter.

The company expands its long-term growth potential by efficiently managing its diverse global footprint. Since macroeconomic factors have had a profound impact on emerging markets, they seem risky. Thus, the company has planned to reduce its relative exposure to emerging markets over time as it continues to focus on incremental investments in developed economies.

The strong secular trends, an established portfolio, and a clear plan for sustained long-term growth deem American Tower Corporation (NYSE:AMT) one of the best real estate stocks to buy for beginners. The company is a cheap investment as it is trading at 35 times its forward earnings, an 11.22% discount to the sector. As of Q2, the stock is held by 63 hedge funds.

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

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.