Tomorrow’s Trade Idea, Today
CAUGHT IN THE CROSSFIRE
When Politics Spook The Tape
Shares of Invitation Homes $INVH ( ▲ 2.18% ) slid after President Trump floated a plan to ban large institutional buyers from purchasing single-family homes. The proposal rattled sentiment around the country’s largest public owner of rental houses.
The selloff pushed Invitation’s stock down more than 11% over the past year, even as the company continued to generate steady cash flow and dividends. Barron’s argues the market reaction may be overdone.
Why The Ban Likely Falls Flat
Legal and political hurdles make it unlikely that any such ban would take effect. Analysts also note that institutional owners represent a small slice of the rental market. Invitation controls less than 1% of US single-family rentals.
The company has also slowed acquisitions. Through the first nine months of 2025, it bought roughly 2,000 homes and sold about 1,000, limiting its exposure to any future restrictions.
Value Hiding In Plain Sight
Invitation trades at about 16 times projected 2026 adjusted funds from operations, a discount to the REIT average. Barron’s estimates the stock sits roughly 25% below liquidation value, with a 4.4% dividend yield.
Evercore ISI $EVR ( ▼ 1.12% ) analyst Steve Sakwa rates the stock Outperform with a $33 price target, implying 19% upside from Friday’s close. Sometimes the best bargains show up right after the noise fades.
