10 Most Undervalued REIT Stocks to Buy Right Now

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1. Rithm Capital Corporation (NYSE:RITM)

Forward P/E Ratio: 5.27

Number of Hedge Fund Holders: 37

Rithm Capital Corporation (NYSE:RITM) ranks among the most undervalued REIT stocks to buy right now. On January 8, UBS began coverage of Rithm Capital Corporation (NYSE:RITM), with a Buy rating and a $16 price target, noting the company’s acquisition of Paramount Group. The recent purchases of Paramount Group and Crestline, according to the firm, promote Rithm Capital’s goal of increasing assets under management and improving the potential for earnings in its asset management division. Specifically, Rithm Capital Corporation (NYSE:RITM) now manages roughly $102 billion in investable assets as a result of the Crestline acquisition.

According to UBS, additional information about the amount of third-party cash secured in connection with the Paramount Group acquisition might boost investor trust in the company’s overall strategy.

The firm also mentioned the potential long-term increase in return on equity and value multiples should Rithm Capital Corporation (NYSE:RITM) successfully move towards an asset management strategy.

Rithm Capital Corporation (NYSE:RITM) operates as an alternative asset manager with a focus on real estate and related services. The business is spread out across four distinct segments, i.e., origination & servicing, investment portfolio, residential transitional lending, and asset management.

While we acknowledge the potential of RITM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RITM and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

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