Why Invitation Homes Stock Is Falling Today

Invitation Homes (INVH -3.91%) stock is slipping in Thursday’s trading. The single-family rental specialist’s share price was down 4.2% as of 2:30 p.m. ET, according to data from S&P Global Market Intelligence.

Invitation Homes published third-quarter results before the market opened this morning, delivering mixed results. While the real estate investment trust’s (REIT) revenue came in ahead of Wall Street’s expectations, its adjusted funds from operations (AFFO) came in lower than anticipated.

In addition to the AFFO miss, the stock is likely being dragged lower by trends impacting the broader market. The S&P 500 is down 0.9% as of this writing, while the Nasdaq Composite is down 1.4%.

Invitation Homes stock is slipping after earnings

Invitation Homes posted AFFO per share of $0.36 on revenue of $617.7 million. Meanwhile, the average analyst estimate had targeted FFO per share of $0.45 on sales of roughly $611.7 million.

For the full-year period, the REIT revised its FFO guidance to between $1.46 per share and $1.50 per share — a change from its previous guidance for FFO of between $1.45 per share and $1.51 per share.

Beyond its Q3 performance, Invitation Homes stock has likely lost ground due to bearish pressures shaping the market at large on Thursday. Investors are weighing economic data and business performances as earnings season rolls into its peak, and bearish indicators have prompted a movement out of stocks.

Is Invitation Homes stock a buy?

Invitation Homes is the largest player in the single-family rental space. While the real estate market has been very strong in recent years, some analysts are forecasting that it will begin to cool off. On the other hand, Invitation Homes’ status as the leading REIT and overall rental company in its corner of the industry suggests it should be able to post strong performance over the long term.

Even if macroeconomic pressures were to cause real estate prices to dip or stagnate, they would likely also make purchasing homes less accessible. In turn, renting would likely continue to remain attractive for many families. For long-term investors, Invitation Homes could be a worthwhile buy at current prices.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Invitation Homes. The Motley Fool has a disclosure policy.

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