You can’t look anywhere on the Internet without seeing announcements about Jeff Bezos and his peers rocketing off into space. Whatever your opinion on that, it sure would be nice to have the kind of income that allows you to do that. If you’re looking into new investments, then consider the housing market. More specifically, check out these 6 housing stocks for a rocket to the moon lifestyle.
What Is a Rocket to the Moon Lifestyle?
There’s a lot of controversy over whether or not people should be rocketing off into space. When Jeff Bezos came out and thanked Amazon’s employees for doing the hard work that’s earned him the money to do this, the memes began immediately. After all, there’s a huge income disparity between Bezos and his workers. Moreover, there are climate concern issues, etc.
So, when we talk about a rocket to the moon lifestyle, we don’t necessarily literally mean that you would use your income in this way. However, we do mean that you’d have the financial independence to do that if you wanted to. Which, in turn, means that you could put all of that money to good or towards whatever inspires and motivates you. A rocket to the moon lifestyle is a variation on FIRE; you have enough to do what you want without having to consider cost as the first priority.
6 Housing Stocks for a Rocket to the Moon Lifestyle
Many people haven’t been sure what to do about investing in real estate during the pandemic era. There are so many changes in demographics across the country. Therefore, it’s been hard to predict where growth is. However, real estate is still a great investment. And in addition to buying a house yourself, you can invest in real estate by investing in housing stocks. Here are 6 housing stocks for a rocket to the moon lifestyle:
1. Howard Hughes Corporation
Million Acres makes a good case for why Howard Hughes Corporation (NYSE: HHC) is one of the best housing stocks for a rocket to the moon lifestyle. We agree. They argue that this is a good investment because:
- Stocks are down 10% due to the market but not the company. Therefore, if you buy now, you get a lower price than you would have last month. And yet, the company seems poised for growth. That means profits for you as an investor.
- Tenant properties have re-opened since the pandemic. Things are looking good. Their balance sheet is up.
- Plus their future looks bright. HHC has planned communities in its portfolio that have seen a 35% YOY leap in Q1 comparisons.
In fact, Vickers Stock Research Corporation says HHC’s earning are likely to improve 400% in the next two years.
NYSE:LEN has seen a steady and dramatic increase in stock growth over the past year. They’re a major home building company. For a while there, this sector was confusing. On one hand, more people were out there wanting to move and potentially buy homes in new places. On the other hand, the lumber market was sparse and costs were high. However, now that lumber costs are going down, businesses like this are more likely than ever to thrive. In fact, Lennar’s earnings are projected to increase by a lot in 2021. For the third quarter of 2021, LEN is expected to earn $3.29 non-GAAP per share, an increase of 55% over 2020’s third quarter.
Lennar has made a number of recent lists of housing stocks for a rocket to the moon lifestyle including Kiplinger’s Top 12.
3. Home Depot
Kiplinger argues that Home Depot (HD) is the hottest of all the housing stocks for a rocket to the moon lifestyle. As aforementioned, people are buying homes. Additionally, people are renovating and updating their homes. As a result, Home Depot is thriving. People with all sizes of real estate businesses spend their money at Home Depot. In fact, Home Depot has managed to increase its earnings by 11.6% each year for the last five years. And, for 2022, analysts say HD will generate revenues of 143.6 Billion – an 8.7% increase over 2021.
Sherwin-Williams (SHW) makes Kiplinger’s list for the same reason as Home Depot. The paint supplier is facing tons of demand as people renovate and rebuild. Kiplinger further notes that analysts strongly recommend this as one of the housing stocks for a rocket to the moon lifestyle. They note that 15 out of 27 analysts rank it as “buy” or even “strong buy” while another 10 rank it as “hold.” That means only 2 analysts recommend selling this stock if it’s already in your portfolio.
Sherwin Williams also pays a 55 cent dividend per quarter and has raised its dividend every year since 2013.
All of this is a good indication that you’d be wise to invest in this business at this time. Other lists of top housing stocks for summer 2021 also include Sherwin-Williams.
5. LGI Homes
NASDAQ:LGIH builds entry-level homes. The Motley Fool included them on a March 2021 list of best housing stocks. Moreover, they list in a more recent list as one of the Top 3 homebuilders for investors. Like Lennar, they’re building houses all over the place thanks to increased demand. In particular, Motley Fool notes that millennials are starting to move in droves. They need starter homes. And therefore, entry-level homes are a really hot real estate investment right now. Additionally, the company is particularly well-poised for growth with earnings expected to triple in 2022.
With a market capitalization of 2.2 Billion and a price to earnings ratio of 10.71 (per yahoo finance), They’re ready to scale up and the timing is right to do so. So chances are good that this could be a profitable stock investment.
6. Toll Brothers
The aforementioned Kiplinger article is one of several that lists Toll Brothers among the best housing stocks for a rocket to the moon lifestyle. TOL’s homebuyers are paying more than they did in the past. They’re truly investing in their homes. The company offers an “affordable luxury product” that apparently has popularity right now. The company has high and growing earning estimates.
In addition, Toll Brothers is attractively priced at 56 dollars per share and pays a quarterly dividend of 17 cents per share. Therefore, you should profit well if you invest in this stock.
TIP: Watch NTST
We think you should also watch Netstreit (NYSE: NTST). This is a “nationwide owner of high-quality, single-tenant net lease properties.” It recently made the Benzinga list of stocks that hit 52-week highs.
Bonus: Best REITs for Investing Today
There are many different ways to invest in housing stocks. The half dozen suggested above are companies that you can invest in directly. However, another approach is investing in Real Estate Investment Trusts (REITs). These are portfolios that combine a variety of different housing-related businesses.
The aforementioned Million Acres article recommends Seritage Growth Properties (NYSE: SRG) and EPR Properties (NYSE: EPR). They say both of these REITs are top investments for 2021.
Investopedia has their own list. It includes three that are “best value.” Then it has an additional list of “fastest growing.” Finally, there’s another list of those REITs with the best momentum. Therefore, this is a great comprehensive guide to choosing REITs based on your investment style.
We’ve also noticed that some very niche REITs are doing great right now. Therefore, you might want to check these out as well. Start with Safehold (NYSE:SAFE), which is steadily surging right now. This is a REIT that is heavy in commercial property ground leases.
Next, turn your attention to Alpine Income Property Trust, Inc. (NYSE: PINE). This is a “publicly traded real estate investment trust that acquires, owns and operates a portfolio of high-quality single-tenant net leased commercial income properties.” Earlier this year Seeking Alpha gave some great reasons to watch this stock closely.
Finally, keep your eye on Global Medical REIT (GMRE). This isn’t just housing per se but rather specifically healthcare facilities. Our tip: if the GMRE stock breaks the 15.92 level, it’s worth investing for your chance at a rocket to the moon lifestyle.
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