Macerich Stock Gains 15.8% in Three Months: Will the Trend Last?

Shares of The Macerich Company MAC have gained 15.8% over the past three months, outperforming the industry's 7.4% growth.This retail real estate investment trust (REIT) enjoys a portfolio of premium shopping centers in the United States. Its focus on omnichannel retailing is likely to support its long-term growth. The aggressive capital-recycling program will lower its leverage and enable it to invest in higher-growth properties. Image Source: Zacks Investment Research Let’s check out the possible factors behind the surge in the stock price for this Zacks Rank #3 (Hold) company and see whether the trend will last or not.Macerich has a high concentration of premium malls in vibrant U.S. markets. These properties are located in densely populated areas, where affluent consumers with significant disposable incomes live, offering the company solid scope to generate decent cash flows.Macerich has been making efforts to enhance its asset quality as well as customer relationships, through increasing the adoption of the omnichannel model. The omnichannel business model has become crucial among several store retailers that are resorting to fulfilling orders out of their mall-based stores.Further, Macerich’s shift toward re-use and mixed-use properties through recapturing and repositioning of anchor tenants remains a key emphasis. Bringing brands to new markets at its mall attracts shoppers.Macerich has been focusing on an aggressive capital-recycling program. It involves the divestiture of non-core and slower-growth assets and the use of the proceeds to increase its presence in core markets and invest in higher-growth properties through acquisitions, developments and redevelopment initiatives. This will also lower its leverage. Its strategic plan also entails business simplification through selective consolidation of some joint ventures interests over time.With the above-mentioned factors, we believe the rising trend in the stock is expected to continue in the near term.Risks Likely to Affect MAC’s Positive TrendThe growing adoption of online shopping may adversely impact the company’s market share for brick-and-mortar stores. Also, the tenant bankruptcies filed by Forever 21 and Express are likely to affect Macerich’s performance in the upcoming quarters. An elevated interest rate environment is likely to result in high borrowing costs for the company, affecting its ability to purchase or develop real estate.Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Curbline Properties Corp. CURB and VICI Properties VICI, each currently carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for CURB’s 2025 FFO per share stands at $1.00, indicating an increase of 26.6% from the year-ago reported figure.The Zacks Consensus Estimate for VICI’s 2025 FFO per share is pinned at $2.35, suggesting year-over-year growth of 4%.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Macerich Company (The) (MAC): Free Stock Analysis Report VICI Properties Inc. (VICI): Free Stock Analysis Report Curbline Properties Corp. (CURB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks