14 Most Profitable Real Estate Stocks Right Now

8. AvalonBay Communities, Inc. (NYSE:AVB)

On March 26, Morgan Stanley downgraded AvalonBay Communities, Inc. (NYSE:AVB) to Equalweight from Overweight and cut the price target from $208 to $203. Adam Kramer, an analyst at the firm, lowered the company’s forecasts more than any other competitor following Q4 earnings. The midpoint of guidance for this year signals nearly flat core funds from operations per share relative to last year.

Morgan Stanley now projects earnings in line with the consensus estimates for 2026 and 2027. Despite this, the firm’s 2028 forecast remains above consensus due to lower projected interest expense. Additionally, the expected 2028 earnings growth of 7.9% would lead peers. Kramer indicated that earnings growth is set to improve in 2027.

Earlier on March 6, TheFly reported that Richard Hightower from Barclays reduced the price target on AvalonBay Communities, Inc. (NYSE:AVB) to $202 from $217 and maintained an Overweight rating. This follows the firm’s lower estimates in the residential real estate investment trust sector.

AvalonBay Communities, Inc. (NYSE:AVB) is a Maryland-based equity REIT that develops and manages communities in top metropolitan areas. Founded in 1978, the company owned or held an ownership interest in 320 communities as of December 31, 2025.