Despite all of that, it’s still a compelling investment opportunity. Since 2012, there have been approximately five million more households created than new homes built in the U.S. That is going to create a long-term catalyst for homebuilders, even if there are speed bumps along the way. The stock’s forward PE ratio is extremely low at 7.6, and its enterprise-value-to-EBITDA is even lower. The company has $3.2 billion of cash on the balance sheet in case there are some lean times, and it’s forecasting 10% growth for next year.
That’s a bargain in today’s market, and DR Horton has strong long-term drivers for further growth.
3. Medical Properties Trust
Medical Properties Trust (NYSE: MPW) is a REIT that owns nearly 450 healthcare facilities around the U.S. and eight other countries. General acute-care hospitals make up most of its portfolio, but behavioral health facilities and inpatient rehab hospitals are also meaningful holdings.
Medical Properties Trust doesn’t operate facilities. Its tenants are healthcare providers that sign long-term triple net leases. This creates predictable and stable cash flow for the business. There’s nothing too exotic about Medical Properties Trust — as long as people need to visit medical facilities for healthcare, and care providers are able to meet their lease obligations, then the REIT should produce cash flow for investors. Telehealth and economic pressures could always create challenges, but demographics and the nature of medical care should give investors confidence.
