CHICAGO, Dec. 23, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Funds recently featured in the blog include the PIMCO Real Estate Real Return Strategy D (PETDX-Free Report), Oppenheimer Real Estate Y (OREYX-Free Report) and Fidelity Series Real Estate Equity F (FREFX-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday's Analyst Blog:
Top Performing Real Estate Funds This Year
Improved labor conditions, favorable affordability dynamic and a low level of housing inventory have been helping housing demand and sales, though at a slow pace. The housing sector has come a long way from the lows witnessed in mid-2006. A string of housing data released recently portrays a mixed to slightly positive picture of the housing market.
The US equities have enjoyed another year of strong gains this year. The Dow, S&P 500 and the Nasdaq are up 7.4%, 12% and 14.1%, respectively so far this year. Fortunately, the momentum is evident in the real estate mutual funds as well. With 27.9% gains (as of Dec 19), Real Estate is the second highest sector equity mutual fund gainer so far this year.
We will be picking the top 3 Real Estate funds this year based on their year-to-date returns and favorable Zacks Mutual Fund Rank among others. However, before doing so, let's look at the positives for the sector.
Keep reading our Mutual Fund Commentary section, where we are reporting on performances and best picks from fund families and other categories.
Housing Recovery on Track
There are plenty of reasons to be optimistic about the broader housing sector over both the short and long term.
Most homebuilding companies have been witnessing average price increases across all operating regions. This has been mostly driven by a shift to higher-priced homes as well as market driven price increases.
The rise in home prices has however moderated to an extent in 2014. The median existing-home price rose 5.5% in October but it was much less than the 11.5% increase seen in the comparable year-ago period.
Meanwhile, mortgage rates in 2014 are still below historical levels, though it has risen from the 2013 average, making housing an affordable option. Low mortgage rates and moderating home prices are expected to give homebuyers the much needed confidence paving the way for higher home demand going into 2015.
It is generally believed that the U.S. economy should sustain the growth seen in 2014 next year and do even better. There are several reasons in support of this optimistic outlook. Lower energy costs encourage consumer spending, while further easing of credit conditions and more upbeat consumer and business confidence all foretell faster economic growth in 2015.
Most housing companies are striving to improve their operating and financial performance through strategic restructuring initiatives. The initiatives taken include workforce reductions, improving overhead leverage, managing inventory tightly and implementing new pricing strategies. The homebuilders expect these cost reduction and operating efficiency improvement plans combined with an improving housing demand to continue to boost profitability in 2015.
Best Performing Real Estate Mutual Funds
We will pick 3 top real estate funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) as we expect the funds to outperform its peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but the likely future success of the fund.
These funds also have high returns year to date. The funds have relatively low expense ratio and carry no sales load. The maximum initial investment required for these funds is $5000.
PIMCO Real Estate Real Return Strategy D (PETDX-Free Report) seeks to provide maximum real return. The fund invests in real estate-linked derivatives and a basket of inflation-indexed securities to achieve its investment objective. It also invests in Fixed Income Instruments including bonds and debt instruments issued by domestic or foreign public and private sector entities.
PETDX has returned 32.4% year to date. The fund carries an annual expense ratio of 1.14% as compared to category average of 1.33%. PETDX carries no sales load.
Oppenheimer Real Estate Y (OREYX-Free Report) invests majority of its assets in real estate companies. These companies either invest at least half of their assets or earn 50% of their revenues from ownership, construction, financing, or sale of commercial, industrial or residential real estate. The fund may invest both in real estate investment trusts (REITs) and real estate operating companies (REOCs).
OREYX has returned 24.2% year to date. The fund carries an annual expense ratio of 1.17% as compared to category average of 1.33%. OREYX carries no sales load.
Fidelity Series Real Estate Equity F (FREFX-Free Report) seeks capital appreciation over the long term and above-average income. The fund invests a lion's share of its assets equities primarily from the real estate industry or other real estate related investments. The fund aims to provide yield higher than that of the S&P 500 Index's composite yield. The fund invests in both domestic and non-US issuers.
FREFX has returned 23.9% year to date. The fund carries an annual expense ratio of 0.59% as compared to category average of 1.33%. FREFX carries no sales load.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank in our Mutual Fund Center.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on PETDX - FREE
Get the full Report on OREYX - FREE
Get the full Report on FREFX - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/the-zacks-analyst-blog-highlights-pimco-real-estate-real-return-strategy-d-oppenheimer-real-estate-y-and-fidelity-series-real-estate-equity-f-300013605.html
SOURCE Zacks Investment Research, Inc.
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article