AvalonBay Communities, Inc. (AVB), based in Arlington, Virginia, is a real estate investment trust focused on developing, acquiring, owning, and operating multi-family apartment communities. With a market cap of $31.3 billion, AvalonBay operates in high-barrier-to-entry markets like the New York metro area, New England, Southern California, and more.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and AVB properties perfectly fit that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the real estate sector.
AVB currently trades 9.2% below its 52-week high of $236.26, touched on Nov. 27. AVB has plunged 5.8% over the last three months, compared to the Residential REIT ETF (HAUS), which has fallen 10% over the same time frame.
In the long term, AVB is up 16% on a YTD basis, and the shares have gained 14.5% over the past 52 weeks. In comparison, the HAUS has surged 10.6% in 2024 and 11.1% over the past year.
AVB has been trading above its 200-day moving averages since mid-April, but has come under its 50-day moving average recently.
Following its Q3 earnings release on Nov. 4, AvalonBay's shares rose 3.6%, buoyed by a core FFO per share of $2.74, which beat the consensus estimate and marked a 3% year-over-year increase. The company also reported quarterly revenue of $734.3 million, exceeding expectations. Furthermore, AvalonBay raised its full-year core FFO per share guidance to a range of $10.99 to $11.09, indicating stronger-than-expected growth.
AVB Properties faces stiff competition from top residential REIT Equity Residential (EQR). AVB has surpassed EQR’s 13% returns over the past year and a 13.6% rise in 2024.
Analysts hold a reasonably positive outlook for AVB. The stock has a consensus rating of "Moderate Buy" from 24 analysts in coverage, and it currently trades above its mean price target of $240.28 indicates an upswing of 10.6% from prevailing price levels.
