ESS Jul 2024 200.000 put

Real estate plays: Camden Property vs. Essex Property Trust

On today's Good Buy or Goodbye segment, host Julie Hyman is joined by Wedbush Securities Managing Director of Equity Research Richard Anderson to discuss the top stock picks in the real estate sector. Anderson recommends Camden Property Trust (CPT) as a stock for investors to buy. He acknowledges that the company has short-term exposure to excessive supply but notes, "supply is going to start to hockey stick down" in the coming years, which he says "will be a real good period of time" for the company. Given the region's job growth, he highlights Camden's location in the Sun Belt as a positive factor, meaning more people will move there.  On the other hand, Anderson says "goodbye" to Essex Property Trust (ESS). He notes that the company is primarily located on the West Coast, where most workers work from home, posing potential headwinds. Additionally, he points out that the company has limited white-collar growth in the area, and the available jobs do not attract "the types of people ... that might rent an apartment from Essex Property." Lastly, Anderson mentions that there is no visible "recovery opportunity" for the company. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Angel Smith