Stocks surged on Tuesday. The S&P 500 jumped 9.4% and the Dow Jones Industrial Average shot up 11.4%. These market gains follow a brutal sell-off resulting from the coronavirus pandemic. Even including Tuesday's rise, the S&P 500 is down 28% since Feb. 19. Bullishness in the market on Tuesday, therefore, is probably partly due to the rebounding of stocks from a sharp decline. But there were more reasons for optimism, including a pending massive stimulus package from the government and commentary from President Trump about trying to get Americans back to work by Easter.
While the S&P 500's gains on Tuesday were impressive, some stocks saw even greater gains. These three real estate stocks, for instance, all soared at least 17% by the time the market closed.
|
Stock |
Intraday High |
Change by Market Close |
|---|---|---|
|
Zillow Group (Z -0.46%) |
25.9% |
17.9% |
|
Redfin (RDFN -0.74%) |
36.6% |
35.5% |
|
Realty Income (O 0.52%) |
17.7% |
17.3% |
Data source: Google Finance.
Here's a closer look at these stocks' recent performance.
Image source: Getty Images.
Zillow Group
Shares of Zillow, which makes the bulk of its gross profit from online real estate marketing services, surged as much as 25.9% on Tuesday but finished the trading day up 17.9%. The stock's jump comes despite an announcement from the company on Monday afternoon that it was withdrawing its 2020 outlook amid uncertainty surrounding the coronavirus pandemic. But the company did notably say it expected to meet or exceed its guidance for its first quarter of 2020.
Shares, of course, are still significantly lower than they were in mid-February, when the coronavirus market sell-off gained momentum. Since Feb. 19, the stock is down a total of 32%.
Redfin
Online real estate brokerage company Redfin has taken an even greater beating during this downturn. Even after the stock's 35.5% gain on Tuesday, shares are down about 49% since Feb. 19.
The stock's surging price on Tuesday is probably due to the same factors driving the overall market and an upgraded rating from an analyst. Needham analyst Brad Erickson upgraded his rating for Redfin stock from underperform to hold, noting that the company is likely to continue gaining market share.
Realty Income
Realty Income, a real estate investment trust (REIT), jumped 17.3% by the time the market closed on Tuesday. Like Zillow and Redfin, however, the stock was still down substantially from levels in mid-February. The stock is down about 37% since Feb. 19.
While DA Davidson analyst Barry Oxford lowered his 12-month price target for the stock on Tuesday to $50, he maintained a buy rating on the stock and explained that this pullback presents a buying opportunity into a blue-chip REIT with a 6.5% dividend yield.
