1 Real Estate Stock to Put on Your Watchlist This Winter

NYSE: TCI | Transcontinental Realty Investors, Inc.  News, Ratings, and Charts

TCI – The slowing pace of interest rate hikes should benefit real estate companies in 2023. Real estate investment company Transcontinental Realty Investors (TCI) looks well-positioned to benefit from the backdrop. Hence, this stock might be a solid addition to your watchlist now. Read on….

Last year, real estate companies were hard hit due to the Fed’s massive interest rate hikes. The valuations of these companies are sitting at significant discounts compared to private real estate benchmarks. However, potential tailwinds, such as the slowing pace of interest rate hikes, could propel the real estate investment industry’s prospects.

Transcontinental Realty Investors, Inc. (TCI) holds a diverse portfolio of equity real estate located across the United States. The company engages in real-estate investment through direct ownership, leases, and partnerships.

The stock has gained 13.1% over the past year and 12.5% over the past six months to close its last trading session at $44.82. It is trading higher than its 50-day moving average of $42.23 and 200-day moving average of $41.77.

Here are the factors that could influence TCI’s performance in the upcoming months:

Solid Bottom Line

For the quarter that ended September 30, TCI’s total revenue decreased 17.1% year-over-year to $8.32 million. However, net income attributable to the company increased significantly from the prior-year quarter to $378.35 million. Its EPS also improved considerably from the prior-year period to $43.79.

Impressive Growth History

TCI’s revenues grew at a CAGR of 96.9% over the past three years and a CAGR of 32.5% over the past five years. Over the past three years, the company’s net income and EPS grew at 44.6% and 45.1% CAGRs, respectively. Its total assets increased at a 10.1% CAGR over the same period.

Robust Profitability

TCI’s trailing-12-month asset turnover ratio of 0.52% is 303.5% higher than the industry average of 0.13%. Its trailing-12-month EBIT margin and net income margin of 90.92% and 79.25% are 288.2% and 366.1% higher than the industry averages of 23.42% and 17%, respectively.

Its trailing-12-month ROTA, ROTC, and ROCE of 34.40%, 31.79%, and 71.50% are significantly higher than the respective industry averages of 2.34%, 2.23%, and 4.99%.

POWR Ratings Reflect Promising Prospects

TCI’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. TCI has a B grade for Growth, consistent with its solid growth record. The stock has a Stability grade of B, in sync with the five-year beta of 0.54.

In the 48-stock REITs – Diversified industry, it is ranked #3.

Click here to see the additional POWR Ratings for TCI (Value, Momentum, Sentiment, and Quality).

View all the top stocks in the REITs – Diversified industry here.

Bottom Line

The slowing pace of interest rate hikes is expected to benefit the real estate investment industry, which could be prospectively beneficial for TCI. On top of it, the company has a solid growth history and impressive profitability. Therefore, this stock might be a solid addition to your watchlist now.

How Does Transcontinental Realty Investors, Inc. (TCI) Stack up Against Its Peers?

While TCI has an overall POWR Rating of B, one might consider looking at its industry peers, Alliance Global Group, Inc. (ALGGY) and One Liberty Properties, Inc. (OLP), which also have an overall B (Buy) rating.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


TCI shares were trading at $45.03 per share on Friday afternoon, up $0.21 (+0.47%). Year-to-date, TCI has gained 1.92%, versus a 1.21% rise in the benchmark S&P 500 index during the same period.


About the Author: Anushka Dutta


Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
TCIGet RatingGet RatingGet Rating
ALGGYGet RatingGet RatingGet Rating
OLPGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Investors: Are You Ready for November?

The S&P 500 (SPY) tumbled to end October. Is that a harbinger of more downside to come? Or will the bull market return with gusto? Investment pro Steve Reitmeister shares his time market views including a preview of his favorite stocks. Get the full story below...

3 Cybersecurity Stocks Defending Against Digital Threats

The demand for cybersecurity solutions is rising as digital threats and sophisticated cyberattacks continue to escalate. Therefore, it might be wise to keep track of cybersecurity stocks, CrowdStrike (CRWD), Palo Alto Networks (PANW), and Fortinet (FTNT), as they offer innovative solutions presenting further growth opportunities. Continue reading...

3 Oil Stocks With High Upside as Global Demand Rebounds

The outlook for oil demand growth appears promising despite economic uncertainties and worldwide supply deficit. Amid this, investing in quality oil stocks Enterprise Products Partners (EPD), Marathon Oil (MRO), and Plains All American Pipeline (PAA) could be ideal as global demand rebounds. Read more...

3 Tech Stocks Under $10 That Could Deliver Big Gains

The technology industry is booming, driven by breakthroughs and significant government investments. Thus, incorporating affordable tech stocks, Sprinklr (CXM), Sabre Corporation (SABR), and Cricut (CRCT) into your portfolio provides an accessible entry point to capitalize on the industry’s growth. Read more…

2 Concerns for Investors in October

The S&P 500 (SPY) may be touching all time highs...but recent action points to concerns on 2 fronts: inflation and earnings. Investment veteran Steve Reitmeister shares his views on these 2 timely topics along with a preview of his top stocks to buy now.

Read More Stories

More Transcontinental Realty Investors, Inc. (TCI) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All TCI News