U.S. equity markets climbed to fresh record-highs this week, while benchmark interest rates ticked lower, after a critical slate of employment data showed lukewarm labor market trends in November. Viewed as a "Goldilocks" report that effectively locked in a December rate cut, payrolls data showed solid "headline" job growth of 227k in November, but notably weaker trends under the surface. Posting gains for a third straight week to extend its post-election rally to around 7%, the S&P 500 advanced another 0.9% this week - pacing for its best year since 2019.
We have screened value stocks LOCO, EZPW, OPFI, LNC and AAT based on the EV-to-EBITDA ratio, which gives the true picture of valuation and earnings potential.
American Assets Trust is a strong buy for long-term investors, showing robust performance despite economic challenges and a 32% YTD increase. AAT has consistently beaten top- and bottom-line estimates, with significant revenue growth attributed to rent escalators and strategic property locations. The REIT's improved balance sheet, high-quality portfolio in affluent markets, and increased FFO guidance underscore its solid upside potential.
The REIT sector snapped a 5-month winning streak with a -3.42% average total return in October. Micro cap (-2.04%) and mid-cap (-2.30%) REITs averaged modest declines in October, while large caps (-3.89%) and small caps (-4.62%) were deeper in the red. 72.90% of REIT securities had a negative total return in October.
Here is how American Assets Trust (AAT) and Applied Digital Corporation (APLD) have performed compared to their sector so far this year.
AAT, QUAD, CORT, CMA and ADT have been added to the Zacks Rank #1 (Strong Buy) List on November 5, 2024.
QUAD, ADT and AAT made it to the Zacks Rank #1 (Strong Buy) value stocks list on November 5, 2024.
AAT, CMA and PROV made it to the Zacks Rank #1 (Strong Buy) income stocks list on November 5, 2024.
AAT, SWDBY and FMAO made it to the Zacks Rank #1 (Strong Buy) income stocks list on November 1, 2024.
SKY, AAT, SOHO, THC and LDOS have been added to the Zacks Rank #1 (Strong Buy) List on November 1, 2024.
American Assets Trust, Inc. (NYSE:AAT ) Q3 2024 Earnings Conference Call October 30, 2024 11:00 AM ET Company Participants Ernest Rady - Chairman & Chief Executive Officer Adam Wyll - President & Chief Operating Officer Bob Barton - Chief Financial Officer Steve Center - Senior Vice President, Office Properties Conference Call Participants Ravi Vaidya - Mizuho Reny Pire - Green Street Advisors Todd Thomas - KeyBanc Capital Markets Operator Welcome to American Assets Trust Inc.'s Third Quarter 2024 Earnings Call. As a reminder, today's conference is being recorded.
American Assets Trust (AAT) came out with quarterly funds from operations (FFO) of $0.71 per share, beating the Zacks Consensus Estimate of $0.54 per share. This compares to FFO of $0.59 per share a year ago.