Avalonbay Hits a New 52-Week High on Strong Q2 Results - Analyst Blog

Shares of Avalonbay Communities Inc. ( AVB ) achieved a new 52-week high, touching $152.95 on Aug 13. The stock closed the session at $152.45, reflecting a solid year-to-date return of 31.2%. The trading volume for the session was 582,157 shares.

Avalonbay Communities currently has a Zacks Rank #2 (Buy), indicating that the stock still has potential to move higher. The company has delivered positive earnings surprises in all the trailing four quarters with an average beat of 3.1% for the year. Further, the long-term expected earnings per share growth rate for this residential equity real estate investment trust (REIT) is presently 10.6%.

Growth Drivers

Strong second-quarter results, including improved performance of its newly developed and acquired communities, and healthy liquidity position drove the company's stock price to the new high.

On Jul 23, 2014, Avalonbay Communities came out with second-quarter 2014 funds from operations (FFO) of $1.71 per share, beating Zacks Consensus Estimate by 3.0%. Also, the reported figure was 10.3% higher than the prior-year quarter figure.

Quarterly results benefited from a rise in same-store rental revenues, driven by escalation in average rental rates. However, an increase in same-store operating expenses and a fall in economic occupancy acted as headwinds.

Other stocks that are worth-considering in this space include American Campus Communities, Inc. ( ACC ), American Residential Properties, Inc. ( ARPI ) and Equity LifeStyle Properties, Inc. ( ELS ). All these stocks carry the same Zacks Rank as Avalonbay Communities.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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