Buy the Dip in these Intriguing REITs: DBRG, IVR, NYMT

Core Viewpoint - Investors are encouraged to explore several REITs that are currently trading under $12 and have made it to the Zacks Rank 1 (Strong Buy) list, as these present favorable risk-to-reward opportunities amid a stock market rebound [1] Group 1: DigitalBridge Group (DBRG) - DigitalBridge Group focuses on investments in fiber networks, macro cell towers, and data centers, which are essential for the growth of 5G technology, cloud computing, and artificial intelligence [2] - The company has over $100 billion in assets and is projected to achieve over 20% EPS growth in fiscal years 2025 and 2026 [3] - DBRG stock has increased from a 52-week low of $6 in early April but remains 34% below its 52-week high of $17 from last October [3] Group 2: Invesco Mortgage Capital (IVR) - Invesco Mortgage Capital manages residential and commercial mortgage-backed securities and is currently trading at $7, which reflects a low valuation at just 3X forward earnings [5] - EPS is expected to decline to $2.26 this year from $2.88 in 2024, with a further projected dip of 12% in FY26, while offering an annual dividend yield of 18.5% [5][6] - The stock has a stable 52-week range, with a low of $5.86 and a high of $9.97, indicating less volatility [6] Group 3: New York Mortgage Trust (NYMT) - New York Mortgage Trust is trading at $6 and is expected to see a significant rebound in its bottom line, offering a generous annual dividend of 12.26% [7] - The stock trades at a reasonable forward earnings multiple of 10.5X and has a low-volatile 52-week range, making it appealing for investors [7][8] - EPS estimates for FY25 and FY26 have increased significantly over the last 60 days, supported by a leveraged portfolio of residential mortgage securities [8] Group 4: Honorable Mentions - Ares Commercial Real Estate (ACRE) and Braemar Hotels & Resorts (BHR) are trading under $5 and are also on the Zacks Rank 1 (Strong Buy) list, with expected positive adjusted EPS next year and annual dividends of 13.27% and 10%, respectively [9]