We recently published a list of 12 Best Warehouse and Self-Storage Stocks to Buy Now. In this article, we are going to take a look at where Public Storage (NYSE:PSA) stands against other best warehouse and self-storage stocks to buy now.
A Quick Look at the Warehousing and Storage Market
The warehouse and self-storage sector plays a vital role in the global economy. This sector is expected to see significant growth and transformation in the coming years. According to a report by The Business Research Company, the warehousing and storage market was estimated to have reached a value of $798.45 billion in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 7.5% during 2025-2029 to reach a value of $1.159 trillion by the end of the forecast period. In 2024, Asia-Pacific was the largest region in the global warehousing and storage industry while North America came in as the second largest region.
This growth is driven by a number of factors including urbanization, growing population, and the rise of e-commerce. There is a rising demand for secure storage solutions as both individuals and businesses downsize their spaces and require additional space for inventory. Warehouses and self-storage facilities are becoming the most feasible solutions for those looking to declutter their homes or store goods for their online businesses.
READ ALSO: 12 Best Land and Timber Stocks to Buy According to Analysts and 12 Best RV and Camping Stocks To Buy Now.
However, according to the 2024 Self-Storage Market Report by Storeganise, public awareness of self-storage services still remains low. Only 43% of the population knows about these services and only 8.7% of the population is actively considering using self-storage solutions. Those who do use self-storage solutions are highly satisfied with the services. Nevertheless, 39% of customers think that the costs are high. These trends highlight an opportunity for self-storage providers to improve their outreach and marketing efforts while also addressing concerns about pricing to attract a wider audience.
Another key trend in the world of warehousing and self-storage is the integration of advanced technologies. As the demand for storage services rises with the growing logistics needs of retailers and manufacturers, companies offering warehousing and self-storage solutions are adopting new and innovative technologies to improve customer experience and operational efficiency. Technological innovations like smart security solutions and automation are helping facilities modernize and improve their services.
With rising urbanization, technological advancements, and a booming e-commerce sector, the warehouse and self-storage market is expected to continue growing in the foreseeable future.
Methodology
To compile our list of the 12 best warehouse and self-storage stocks to buy now, we looked for the largest warehouse and self-storage companies. We reviewed our own rankings, financial media reports, and various online resources including ETFs to compile a list of the best warehouse and self-storage stocks. Next, we focused on the top 12 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds. The 12 best warehouse and self-storage stocks to buy now are ranked in ascending order based on the number of hedge funds holding stakes in them as of Q3 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Aerial view of a thriving self-storage facility, showcasing the company’s expertise in acquisition and development.
Public Storage (NYSE:PSA)
Number of Hedge Fund Holders: 28
Public Storage (NYSE:PSA) is a real estate investment trust (REIT) that is focused on acquiring, developing, owning, and operating self-storage facilities. The company has more than 3,300 storage facilities in the US. PSA offers self-storage facilities, business storage, vehicle and RV storage, boat storage, and climate-controlled storage services.
The company is focused on growth initiatives. In the third quarter of 2024, Public Storage (NYSE:PSA) acquired 3 self-storage facilities with 200,000 net rentable square feet for $24.3 million. Additionally, the company opened a newly developed facility and successfully completed a number of expansion projects, which together added 500,000 net rentable square feet at a cost of $142.6 million. By the end of the third quarter of 2024, Public Storage (NYSE:PSA) had various facilities under development and in expansion, which together are expected to add 4 million net rentable square feet at a cost of $712.4 million.
Another key area of focus for the company is utilities. Public Storage (NYSE:PSA) has reduced its utilities usage by 30% by switching to LED lighting across its portfolio and installing solar power systems at more than 800 properties. The company has increased its solar energy goal to 1,300 properties by the end of 2025.
Overall, PSA ranks 8th on our list of best warehouse and self-storage stocks to buy now. While we acknowledge the potential of warehouse and self-storage companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PSA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center