Avoid becoming a slumlord with $EQR

2 dic

Key Stats

• Market Cap: 29.09B
• P/E Ratio: 32.44
  
• Dividend Yield: 3.5% ($0.675 quarterly, next dividend date: mid-December)
  
• Projected 2025 Revenue Growth: +5% YoY
  

Technical Reasons EQR Will Go Up:

• Channel Breakout: EQR is testing resistance around $77.50, with recent momentum suggesting a potential breakout into a bullish channel.
  
• RSI Rebound: The RSI shows a strong bounce near the oversold territory, indicating growing buying pressure.
  
• Institutional Buying Patterns: Volume surges last week hint at heavy accumulation, possibly from institutions positioning ahead of a sector-wide recovery.
  

Fundamental Reasons EQR Will Go Up:

• Rent Demand Surge: Equity Residential specializes in urban, high-demand markets. Despite macro pressures, rents have remained stable, with 2024 projections showing steady demand in major metros.
  
• Operational Efficiency: Recent cost-reduction initiatives are expected to boost net operating income, enhancing shareholder value.
  
• REIT Sector Sentiment: Improving sentiment in REITs (Real Estate Investment Trusts) following the Fed’s dovish signals is driving inflows into this undervalued segment.
  

Potential Paths to Profit

• Lowest Risk: Buy shares directly and hold. Reinvest dividends for compounded returns.
  
• Options Play: Buy the June 2025 $80 calls. These are priced reasonably and align with the six-month time horizon.
  
• Pairs Trade: Long EQR and short a weaker REIT peer for a market-neutral strategy.
  

Disclaimer: We are not a brokerage or investment firm. We do not offer financial advice or investment advice and/or signals. This is not certified financial education. We offer access to the daily thought process of an individual and his experiences. We do not offer refunds. All sales are final.