Dallas-based Invitation Homes Inc. (INVH) is a single-family home leasing and management company. With a market cap of $22 billion, Invitation Homes meets the changing lifestyle demands by providing access to high-quality, updated homes with various features.
Companies worth $10 billion or more are generally described as "large-cap stocks," Invitation Homes fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the residential REIT industry. It focuses on owning, renovating, leasing, and operating single-family residential properties across the U.S.
Invitation homes touched its 52-week high of $37.80 on Apr. 9 and is now trading 4.7% below that peak. INVH experienced marginal gains over the past three months lagging behind the Dow Jones Industrials Average’s ($DOWI) 8.2% gains during the same time frame.
Over the longer term, Invitation Homes has substantially underperformed DOWI. INVH gained 5.8% over the past 52 weeks and 5.7% in 2024 compared to DOWI’s 21.8% gains over the past year and 11.5% returns on a YTD basis.
To confirm the bullish trend, INVH has predominantly traded above its 50-day and 200-day moving averages since mid-November 2023, albeit with some significant fluctuations.
Shares of Invitation Homes plunged 7.7% following its Q2 earnings release on Jul. 24. The company reported an 8.8% year-over-year revenue growth to $653.5 million and a 7.4% growth in core funds from operations (FFO), amounting to $291.8 million. However, its net income available to common shareholders plummeted 47% to $73 million. These mixed results likely rattled investors, leading to a sharp decline in share prices.
Nevertheless, the stock rebounded 2.6% in the next trading session and maintained a positive momentum for six consecutive sessions.
Invitation Homes’ competitor, American Homes 4 Rent (AMH), gained 11.8% over the past 52 weeks and 10.7% in 2024, outperforming INVH’s single-digit returns.
Among the 22 analysts covering the INVH stock, the consensus rating is a “Moderate Buy.” The mean price target of $39.01 suggests a potential upside of 8.2% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
