Invitation Homes Inc. faces decline amid market strength
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 03 2024
0mins
Should l Buy INVH?
Invitation Homes Inc. experienced a price drop of 5.02%, hitting a 5-day low, while the broader market showed positive movement with the Nasdaq-100 up 0.70% and the S&P 500 up 0.25%.
This decline is attributed to sector rotation, as the company has not announced any new developments or significant events that would drive its stock price higher, despite the overall market strength. The lack of recent news regarding Invitation Homes Inc. suggests that investors may be reallocating their portfolios towards other sectors.
The implications of this price movement indicate that while the broader market remains strong, Invitation Homes Inc. may need to provide new catalysts or updates to regain investor interest and stabilize its stock price.
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Analyst Views on INVH
Wall Street analysts forecast INVH stock price to rise
16 Analyst Rating
6 Buy
10 Hold
0 Sell
Moderate Buy
Current: 26.840
Low
26.35
Averages
32.64
High
38.00
Current: 26.840
Low
26.35
Averages
32.64
High
38.00
About INVH
Invitation Homes Inc. is a real estate investment trust that conducts its operations through Invitation Homes Operating Partnership LP (INVH LP). INVH LP is engaged in owning, renovating, leasing, and operating single-family residential properties. Through THR Property Management L.P., a subsidiary of INVH LP, and its wholly owned subsidiaries (collectively, the Manager), it provides all management and other administrative services. The Manager provides professional property and asset management services to portfolio owners of single-family homes for lease. It has a vertically integrated operating platform that enables the Company to acquire, renovate, lease, maintain, and manage both the homes it owns and those it manages on behalf of others. The Company’s business activity includes property operations, marketing and leasing, digital marketing initiatives and branding, resident relations and property maintenance, and investment and asset management.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Invitation Homes to Announce Q4 Earnings on February 18
- Earnings Announcement: Invitation Homes is set to release its Q4 2023 earnings on February 18 after market close, with consensus EPS estimated at $0.16 and revenue expected to reach $684.58 million, indicating investor interest in the company's financial performance.
- Earnings Estimate Changes: Over the past three months, EPS estimates have seen no upward revisions and one downward revision, while revenue estimates have experienced no upward revisions and four downward revisions, reflecting a cautious market sentiment that could impact investor confidence.
- Market Dynamics: The competitive relationship between Invitation Homes and American Homes 4 Rent has drawn market attention, with analysts suggesting that this could affect both companies' performance in the rental market, particularly amid challenges in the current housing market.
- Acquisition Activity: Invitation Homes has acquired build-to-rent developer ResiBuilt for $89 million, a move that not only strengthens its position in the build-to-rent sector but also has the potential to drive long-term revenue growth for the company.
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- FY 2026 Guidance: The company projects FY 2026 Core FFO per share to range from $1.90 to $1.98, with a midpoint of $1.94, reflecting optimism about future earnings despite facing uncertain market conditions.
- Operating Cost Growth: Same-store core operating expenses are expected to grow between 3.0% and 4.0%, with a midpoint of 3.5%, highlighting challenges in cost control that may impact future profit margins.
- Acquisition and Disposition Plans: The company plans to dispose of $450 million to $650 million in wholly owned assets in FY 2026, demonstrating a strategic intent to optimize its investment portfolio and enhance overall financial health.
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See More
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- Earnings Announcement: Invitation Homes is set to release its Q4 2023 earnings on February 18 after market close, with consensus EPS estimated at $0.16 and revenue expected to reach $684.58 million, indicating investor interest in the company's financial performance.
- Earnings Estimate Changes: Over the past three months, EPS estimates have seen no upward revisions and one downward revision, while revenue estimates have experienced no upward revisions and four downward revisions, reflecting a cautious market sentiment that could impact investor confidence.
- Market Dynamics: The competitive relationship between Invitation Homes and American Homes 4 Rent has drawn market attention, with analysts suggesting that this could affect both companies' performance in the rental market, particularly amid challenges in the current housing market.
- Acquisition Activity: Invitation Homes has acquired build-to-rent developer ResiBuilt for $89 million, a move that not only strengthens its position in the build-to-rent sector but also has the potential to drive long-term revenue growth for the company.
See More
Invitation Homes Releases FY 2026 Guidance
- Stable Financial Performance: Invitation Homes reported a Q4 Core FFO of $0.48, aligning with expectations, while achieving $685.25 million in revenue, a 4.0% year-over-year increase, indicating the company's resilience and growth potential in the rental market.
- FY 2026 Guidance: The company projects FY 2026 Core FFO per share to range from $1.90 to $1.98, with a midpoint of $1.94, reflecting optimism about future earnings despite facing uncertain market conditions.
- Operating Cost Growth: Same-store core operating expenses are expected to grow between 3.0% and 4.0%, with a midpoint of 3.5%, highlighting challenges in cost control that may impact future profit margins.
- Acquisition and Disposition Plans: The company plans to dispose of $450 million to $650 million in wholly owned assets in FY 2026, demonstrating a strategic intent to optimize its investment portfolio and enhance overall financial health.
See More
Analysis and Outlook: Saved by the Bell
- Nasdaq Performance: The Nasdaq Composite ended its four-day losing streak today.
- Impact of AI Concerns: Despite the positive performance, concerns regarding AI continued to affect software stocks.
See More
Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
See More
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- Monetary Policy Balance: As Fed Chair Powell's tenure approaches its end, the market is keenly focused on his performance in balancing maximum employment and stable prices, especially with the upcoming release of the latest meeting minutes, marking one of his final meetings in office.
- Interest Rate Challenges: During Powell's leadership, the Fed has navigated emergency interventions and an aggressive rate-hiking cycle, with the benchmark rate rising from near zero to over 5%; despite initially viewing inflation as 'transitory,' achieving a 'soft landing' for the economy will be a key part of his legacy.
- Market Reaction Expectations: Investors are optimistic about the upcoming personal consumption expenditure data, although the cooler-than-expected CPI could impact the Fed's interest rate outlook, with markets currently pricing in only two quarter-point cuts for the year.
- Industry Dynamics Observation: As concerns over AI disruption grow, stocks in software, finance, and real estate have seen declines, prompting investors to search for the next potentially affected sectors, with Walmart and Deere's upcoming earnings reports likely to be focal points for market attention.
See More
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- Housing Shortage Reality: According to Goldman Sachs, the U.S. faces a shortage of 3 to 4 million homes, significantly exceeding the normal annual construction of 1.5 million, leading to fierce competition among buyers and rising prices, thus providing sustained market opportunities for major homebuilders.
- Growth Potential of LGI Homes: LGI Homes is projected to achieve an 11% sales growth this year and 6% next year, reaching $2 billion in sales by 2027, showcasing its ability to stand out in a competitive market, particularly among first-time homebuyers.
- Market Leadership of D.R. Horton: As the largest homebuilder in the U.S., D.R. Horton reported $34.3 billion in sales last year, with expectations to grow sales to nearly $40 billion in the coming years, and its reasonable 10x P/E ratio offers a compelling value proposition for investors.
- Income Model of Invitation Homes: Invitation Homes owns and manages over 100,000 homes, with projected sales growth of only 3%, but its 4.34% dividend yield significantly surpasses the market average, attracting more income-focused investors.
See More
