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Is American Homes 4 Rent (AMH) an Attractive Stock?

Is American Homes 4 Rent (AMH) an Attractive Stock?

Yahoo16-05-2025
Baron Funds, an investment management company, released its 'Baron Real Estate Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1 2025, stocks were sold due to economic growth slowdown, inflation, and policymaking issues, including Baron Real Estate Fund®, without considering value. The fund declined 6.69% (Institutional Shares) in the quarter compared to a 3.11% decline for the MSCI USA IMI Extended Real Estate Index (the MSCI Real Estate Index) and a 0.76% gain for the MSCI US REIT Index (the REIT Index). In addition, please check the fund's top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Baron Real Estate Fund highlighted stocks such as American Homes 4 Rent (NYSE:AMH). American Homes 4 Rent (NYSE:AMH) is a large-scale integrated owner, operator, and developer of single-family rental homes. The one-month return of American Homes 4 Rent (NYSE:AMH) was 1.55%, and its shares gained 2.69% of their value over the last 52 weeks. On May 14, 2025, American Homes 4 Rent (NYSE:AMH) stock closed at $37.43 per share with a market capitalization of $15.778 billion.
Baron Real Estate Fund stated the following regarding American Homes 4 Rent (NYSE:AMH) in its Q1 2025 investor letter:
"American Homes 4 Rent (NYSE:AMH) is the second largest single-family home rental company with a portfolio of 60,000 single-family homes available for rent located across a diverse set of more than 30 markets with attractive renter demographics via above average incomes and employment growth.
The exterior of a newly acquired rental property, showcasing the renovations made by the REIT.
American Homes 4 Rent (NYSE:AMH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held American Homes 4 Rent (NYSE:AMH) at the end of the fourth quarter which was 30 in the previous quarter. While we acknowledge the potential of American Homes 4 Rent (NYSE:AMH) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered American Homes 4 Rent (NYSE:AMH) and shared the list of best residential real estate stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
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