We are at the onset of the Q1 earnings season and investors are glued to quarterly releases. One can be lured to stocks that have already impressed with profits. But instead of betting on them, picking stocks that are set to beat can be far more rewarding.

This is because, an earnings beat essentially serves as a catalyst and raises investors’ confidence in the stock. This in turn pushes up its price and fetches more gains from one’s investments. Further, buying an earnings play with less initial investment translates into great returns when the stock eventually trades at a higher price.

Now, this brings us to the REIT industry – we’ll tell you why. Even though in the past few months, Fed rate hike issues and investors’ cautious approach deterred gains from this industry, there has been a recent deceleration in market expectations for a June rate hike amid a fall in consumer prices and a decline in retail sales in March for two consecutive months.

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