Yesterday’s on private-sector job creation disappointed significantly, showing a loss of 32,000 jobs versus the consensus forecast of a 5,000 gain. Despite the negative news for the economy, stock markets still closed higher.
The weakness in the US job market has strengthened expectations that the will cut rates at its meeting next Wednesday, which is supportive for equities. Furthermore, signals suggest the Fed is likely to continue easing into 2026, with at least one additional rate cut expected before mid-year.
Some sectors are likely to benefit more than others from the Fed’s rate cuts. Real estate is frequently cited as a key beneficiary, since property transactions often depend on credit, which becomes cheaper when rates fall.
Real estate stocks become particularly attractive in a declining interest-rate environment, as they typically offer steady dividends, providing meaningful passive income while yields on bonds and money market instruments decline.
Investing in real estate stocks this December could be a smart way to close out 2025 and start 2026 on a strong note.
So, using the Investing.com screener, we went in search of opportunities in US real estate stocks. Here are the exact parameters we used for our search:
In this search, we used InvestingPro metrics, including Fair Value and Health Score, which are available only to InvestingPro subscribers with a PRO+ plan. Fair Value provides an average of several recognized valuation models for each stock, while the Health Score evaluates multiple financial metrics to measure a company’s overall strength.
We were thus able to identify 9 opportunities:
InvestingPro’s Fair Value estimates indicate that these US real estate stocks are undervalued by 16.7% to 63.5%, while analysts see upside potential of 15.5% to 34%.
All of these stocks also offer attractive dividend yields, ranging from 6.2% to 13.5%.
Beyond real estate, there are other opportunities in a falling-rate environment. Small-cap stocks, which rely more heavily on bank loans than larger companies, are often cited as key beneficiaries of Fed rate cuts.
In fact, the Investing.com screener provides several pre-configured small-cap stock searches that can be very useful for identifying additional opportunities.
Please note that some searches are reserved for InvestingPro subscribers with a PRO+ plan.
Please keep in mind that some of these pre-configured searches are available only to InvestingPro and Pro+ subscribers.
If you’re not yet an InvestingPro subscriber and want to explore the opportunities mentioned in this article, along with access to InvestingPro tools, you can now take advantage of the 55% off Cyber Monday discount by clicking the button below.
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Finally, please note that the features mentioned in this article are far from being the only InvestingPro tools useful for market success. In fact, InvestingPro offers a wide range of tools that enable investors to always know how to react in the stock market, regardless of market conditions. These include:
AI-managed stock market strategies that are re-evaluated monthly.
10 years of historical financial data for thousands of global stocks.
A database of investor, billionaire, and hedge fund positions.
And many other tools that help tens of thousands of investors outperform the market every day!
Tens of thousands of investors are already using InvestingPro to outperform the market. Why shouldn’t you?
Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.
