Hotel REITs are outperforming most of the stocks in the (IYR) real estate sector. The other groups in specially, diversified, office industrial and retail REITs, continue to bottom. Hotel stocks show no issues as they continue to trek higher. While we anticipate back and fill along the way, the stocks in the hotel real estate investment trust category are setup for appreciation in the short and medium term. We would swing these stocks into the spring unless some caveat appears that would change our mind,
Host Hotels & Resorts, Inc. (HST) is a publicly owned real estate investment trust (REIT). The firm primarily engages in the ownership and operation of hotel properties. It invests in the real estate markets of United States. It also invests in Canada, Mexico, Chile, the United Kingdom, Italy, Spain, and Poland. – source Yahoo Finance.
Technically speaking, the stock is rebounding off of its ascending 9ema and pushing into the Kirby. Overhead supply tapers off markedly above current levels. Volume is good. RSI, MACD and STO are rising. The 200ma is starting to turn higher, signifying we could be starting a longer term bullish trend. HST reported better than expected earnings on 11/02/2016, so we do not have looming earnings to deal with.
Additionally, the stock is building the right side of a cup pattern. You could wait for a handle at the 18.00 (+/-) level, if you ascribe to William O’Neil’s preference to wait for the handle breakout. Whichever you choose, place your stop initially under the low of the day, then trail your stops as the stock moves higher.
Pebblebrook Hotel Trust, through Pebblebrook Hotel, L.P., operates as a real estate investment trust. The company acquires and invests primarily in hotel properties located in the United States. It holds interests in the Doubletree Bethesda Hotel and Executive Meeting Center located in Bethesda, Maryland; Sir Francis Drake Hotel located in San Francisco, California; and InterContinental Buckhead Hotel located in Atlanta, Georgia. – source Yahoo Finance.
From a technical perspective, PEB is trading post earnings. The company beat expectations. We note price is breaking higher, but still resides close to its break out levels. RSI is rising along with price. The 9ema is above the 20ema while both are ascending in a bullish configuration. MACD is above zero and trending higher. A pullback into Tuesday price action would be a gift, if it is met with buying volume on the rebound. Prices are above VBP resistance, now support.
As a REIT, most companies in this group are not subject to federal income tax to the extent that they distribute at least 90% of its taxable income to its shareholders. Therein lies the interest most fixed income investors find attractive.\
We are also watching VAC, LHO, SKT (a favorite), BXP and DFT. Watch list REITs DEA and LXP are fairing well.
As a side note, this is actually a good time for stock traders. While we for direction, our entries are less effected by market momentum. July through September offered the most recent example, which SPY moved sideways, and most stocks appreciated handsomely.
Enjoy the day,
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