We recently added a few new REITs to our Small Cap REIT Portfolio (as can be viewed in the Forbes Real Estate Investor).
Let’s face it, smaller REITs are risky investments, but they may have the potential for better growth than larger rivals. With large institutional investors more focused on major REITs like Simon Property Group (NYSE:SPG) or Ventas Inc. (NYSE:VTR), smaller REITs often get ignored and may create opportunities to find better value.
Let me make no mistake, a small-cap company is riskier, and that’s why you won’t see me attaching a SWAN (sleep well at night) label to these less visible securities. However, for the investor willing to stomach the volatility risks, owning a portfolio of small-cap REITs could be rewarding.
Our Small Cap Portfolio has returned around 20% year to date, compared with 11.8% for the Vanguard REIT Index (NYSEARCA:VNQ). Given the volatility related to interest rate fears, we suspect the larger REITs will be more susceptible to mood swings because of their index weighting.
Best Small Cap Stocks To Buy For 2018: Texas Roadhouse, Inc.(TXRH)
Advisors’ Opinion:
- [By Jon C. Ogg]
Texas Roadhouse Inc. (NASDAQ: TXRH) was raised to Buy from Neutral at BTIG Research.
USG Corp. (NYSE: USG) was reiterated as Hold but the price target was raised to $35 from $29 (versus a $34.23 close) at Jefferies.
- [By Joe Tenebruso]
Fortunately, well-chosen dividend-growth stocks can help you accomplish both of these goals. And with its powerful wealth-building combination of increasing dividend payouts and share-price appreciation, Texas Roadhouse (NASDAQ:TXRH)is one of the best available in the market today.
- [By Teresa Rivas]
Texas Roadhouse(TXRH) tumbled more than 12% on Wednesday as itsfourth-quarter earningsand revenue fell short of expectations.
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The restaurant chain said it earned 29 cents a share on revenue of $484.7 million. Analysts were expecting earnings per share of 38 cents on revenue of $497.3 million.
Same-restaurant sales grew 1.2% at company restaurants and 2% at domestic franchises. For the first 55 days of the first quarter, Texas Roadhouse said that same-store sales rose 1.5%.
The company also raised its dividend 10.5% to 21 cents a share.
Some analysts urged investors to keep the faith in the stock.Barclay’s JeffreyBernsteinreiterated an Overweight rating and $47 price target on thestock:
We believe TXRH fundamentals remain best-in-class. That said, the near-term focus remains on directional comps. And not unlike the broader industry, TXRH comps eased significantly to close 2016. Such led to disappointing 4Q16 results from top to bottom. Importantly, while the brand ‘is not immune’ to industry comp headwinds, the relative outperformance to the category was maintained. Looking to 2017, key guidance metrics were reiterated. While questions remain on whether the recent easing of industry comps will persist, we remain comforted by TXRH’s relative outperformance and easing comps as we move through 2017.
Maxim’s Stephen Andersonreiterated a Buy rating, although he took his price target down $4, to $52:
In our view, TXRH is not immune to the broader slowdown in Casual Dining, but we believe the company will emerge stronger than peers in the next few quarters.TXRHs disappointing 4Q16 comp of +1.3% (blended) was pulled down by a rare negative comp month in December (-2.1%), marking the first time this occurred in almost four years. Comps were +3% or better in both October and November, and comps so far in 1Q17 are positive despite a stormy start to the quarter in
- [By Dan Caplinger]
Steakhouse chain Texas Roadhouse (NASDAQ:TXRH) has had to deal with an extremely difficult business environment for restaurant companies, and investors know all too well how tough times can hurt major players in the industry. Last quarter, Texas Roadhouse disappointed investors with sluggish results, and the company wanted to start 2017 on a better footing.
- [By Demitrios Kalogeropoulos]
As for individual stocks, Texas Roadhouse (NASDAQ:TXRH) and Garmin (NASDAQ:GRMN)made large moves following their quarterly earnings announcements.
Best Small Cap Stocks To Buy For 2018: Mercury Systems Inc(MRCY)
Advisors’ Opinion:
- [By Lisa Levin]
Mercury Systems Inc (NASDAQ: MRCY) shares shot up 15 percent to $18.94 after the company agreed to acquire the embedded security, RF and Microwave and custom microelectronics businesses of Microsemi Corporation (NASDAQ: MSCC).
- [By Lisa Levin]
Mercury Systems Inc (NASDAQ: MRCY) shares shot up 15 percent to $19.00 after the company agreed to acquire the embedded security, RF and Microwave and custom microelectronics businesses of Microsemi Corporation (NASDAQ: MSCC).
Best Small Cap Stocks To Buy For 2018: Allegheny Technologies Incorporated(ATI)
Advisors’ Opinion:
- [By Dan Caplinger]
The stock market performed well on Tuesday, responding to steady improvement among many companies as earnings season kicked into high gear. Although political issues are likely to remain in the spotlight for some investors for the foreseeable future, many market participants are looking to economic and business issues in driving their investing decisions. Major market benchmarks finished the day with gains of 0.5% to 1%, but some stocks did much better. Among the best performers on the day were Allegheny Technologies (NYSE:ATI), II-VI (NASDAQ:IIVI), and Beazer Homes (NYSE:BZH). Below, we’ll look more closely at these stocks to tell you why they did so well.
- [By Lisa Levin]
Tuesday morning, the basic materials shares climbed by 0.95 percent. Meanwhile, top gainers in the sector included Allegheny Technologies Incorporated (NYSE: ATI), up 5 percent, and Mechel PAO (ADR) (NYSE: MTL), up 5 percent.
