2 top stocks to hold throughout a bear market

Recent market volatility has pushed the stock market into official bear territory twice this year. The market has corrected slightly, but it still appears to be on a bear trajectory. Bear markets, as uncomfortable as they may be, are no time to be restless or panic. It’s time to buy and hold the top stocks.

The two top stocks in the real estate industry today offer (pld) -2.19%, And American Tower (AMT 0.34%,, Although both the stocks are down this year, so investors should keep holding on these stocks. bear market And after the recovery in the next market.

offer

real estate investment trust (REITPrologis is the world’s largest industrial operator and one of the largest REITs by market capitalization. The company, which has heavy ties to the rapidly expanding e-commerce industry, owns and leases over 1 billion square feet of warehouses, industrial bays, logistics centers and last-mile distribution centers across four continents.

Some of the major acquisitions in the works of Prologis are, with purchase of Duke Realty, Which will be added to its Core Funds from Operations (FFO) almost immediately. But this is not the only thing going for this. Within the next five years, 56% of the company’s leases will expire, giving the REIT a tremendous opportunity to increase its net operating income (NOI). Even though the strong rent growth the company is seeing today has slowed dramatically, it still equates to about $2 billion in rental revenue.

Its share price has fallen close to 23% this year due to general market volatility, but there is also growing concern over the impact of the slowdown on e-commerce spending. However, its recent performance does not show any cause for concern. Its occupancy as of August 2022 was 97.7% while its net effective rent increase was 52.1%. Plus, including key metrics for REITs free cash flowFFO and net operating income increased by 10%, 9% and 8%, respectively.

With $5.2 billion in cash and cash equivalents, the company is more than fit to face a bear market. Not to mention, its long-term prospects for growth within the industrial industry could devastate the stock when the next bull market transpires.

American Tower

American Tower is a communications infrastructure REIT that owns, develops and leases cellphone towers, antenna systems, and data centers around the world. The company is the largest REIT by market capitalization and an absolute giant in the communications industry, leasing more than 222,000 communications sites in 25 countries. Its tenants include major cellphone providers such as AT&T, VerizonAnd T Mobile With many international cellphone providers.

Its core communications business has performed well for the company over the past 24 years. Since its IPO in 1998, the company has provided an overall return of 12.5%, outperforming S&P 500, But American Tower saw an opportunity to further diversify its holdings and expand its revenue by acquiring data center REIT CoreSite in 2021. Its 27 data center facilities account for about 7% of annual revenue.

Canada and US Bookings, which has been leasing activity between tenants and its communications sites, have been hit following the Sprint and T-Mobile merger. That’s one reason the stock is down 9% at the time of this writing. However, that is expected to improve now as American Tower has forged a long-term partnership with Verizon for the continued roll-out of 5G technology. Not to mention, the company still has massive market opportunities as the adoption of 5G internationally and the opportunity to grow its assets thanks to its strong balance sheet.

Communication activity will not slow down in a bear market. People will continue to use their smartphones and rely on mobile data connections like they would at any time. communication assets are an essential part of our world, which means that its leasing activity should not fluctuate much over the long term. Plus its dividend yield of 2% makes American Tower a top stock for a bear market and beyond.

liz broomer American Tower, Duke Realty and Prologis have positions. The Motley Fool has American Tower and Prologis status and recommends it. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has one Disclosure Policy,

Be the first to comment

Leave a Reply

Your email address will not be published.


*