Because REITs are generally considered defensive plays, we think it could be wise to bet on quality REITs amid the current, inflationary environment. Wall Street analysts expect The GEO Group (GEO) and Retail Value (NYSE:RVI) to gain significantly in the coming months. So, these stocks are worth adding to one’s watchlist. Read on.According to a FactSet report, more S&P 500 companies are beating EPS estimates for the third quarter than on average, and beating EPS estimates by a wider margin than on average. However, high inflation continues to worry investors. Against his backdrop, we think it could be wise to bet on quality real estate investment trusts (REITs) because they tend to be relatively stable amid market volatility.
Investors' interest in REITs is evident in the Real Estate Select Sector SPDR Fund’s (XLRE) 8.3% gains over the past month and 14.4% returns over the past six months.
Therefore, we think REITs stocks The GEO Group Inc. (GEO) and Retail Value Inc. (RVI) could be solid additions to one’s watch list now. Wall Street analysts expect them to rally by 80% or more in price in the near term.