5 Top Picks to Surf on the Short-Term Relief From Trade Tensions Rally — Weekly Top Picks
Top Pick #4 : A play on the US housing market
First American Corp.
Kash Pashootan, Sr.VP & Portfolio Manager at First Avenue Advisory recommends First American Corp. (FAF-N), “This is a play on the US housing market. They sell home title insurance. The stock has fallen by 12% recently on interest rate increase concerns.
He thinks this fear is over blown as real estate pricing is well below 2008 peaks. It is trading at 11 times earnings. Yield 3%.”
Recent interest rate hikes and accelerated rise expectations in U.S. caused severe plunge in share price of First American Corp. However, strong labor market, tax reduction and ultra-low real estate pricing should keep the US housing market growth prospects intact in the coming quarters.