We recently compiled a list of the 12 Best Self Storage and Apartment Stocks to Invest In. In this article, we are going to take a look at where WillScot Holdings Corporation (NASDAQ:WSC) stands against the other self-storage and apartment stocks.
In the US, the apartment and self-storage markets are adapting to changing economic conditions and consumer needs. Both markets play a crucial role in the economy and are expected to maintain growth trajectories driven by the demand for housing and storage solutions.
The demand for safe storage solutions is supported by lifestyle changes such as the increasing prevalence of remote work and downsizing among retirees. Additionally, the rise of e-commerce is further supporting this trend. As businesses downsize their space and individuals declutter their homes, there is a rising demand for self-storage solutions.
According to Nuveen Real Estate, the US apartment market saw record supply growth in 2024. This made it challenging for apartment operators to grow rents and keep occupancy levels above the sector’s long-term average. Despite these challenges, the demand for apartments remains robust due to a housing shortage and a growing preference for renting, particularly among younger generations who prefer flexibility over owning a home.
The apartment market saw an increase in resident retention in 2024 compared to the previous year. Middle-income households are expected to continue driving the ongoing demand for rental properties in the foreseeable future.
Methodology
To compile our list of the 12 best self-storage and apartment stocks to invest in, we looked for the largest apartment 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 self-storage and apartment 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 self-storage and apartment stocks to invest in were then 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).
Is WillScot Holdings Corporation (WSC) The Best Self Storage and Apartment Stock to Invest In?
Aerial shot of a modular space surrounded by poratable storage units.
WillScot Holdings Corporation (NASDAQ:WSC) is the leading provider of innovative and turnkey space and storage solutions across North America. The company offers a wide range of products, including modular office complexes, portable storage containers, mobile offices, protective buildings and climate-controlled units, and clearspan structures. WillScot Holdings Corporation (NASDAQ:WSC) operates from a network of about 260 branch locations and additional drop lots across the US, Canada, and Mexico. It serves customers in a diverse range of industries, including manufacturing, retail, education, construction, healthcare, and entertainment. WSC is one of the best self-storage stocks to buy.
The corporation offers an extensive range of value-added products and services. As specialty rental services continue to grow, clients look for more complex and tailored solutions. WillScot Holdings Corporation (NASDAQ:WSC) has been strategically investing in technology and has positioned itself well to attract large customers by providing superior services.
On February 18, 2025, Morgan Stanley reaffirmed its ‘Overweight’ rating for WillScot Holdings Corporation (NASDAQ:WSC) while keeping the price target at $50. The firm’s analysts noted that the company’s new capital plan will now include a dividend, which is seen as a significant shift for WillScot Holdings Corporation (NASDAQ:WSC) as it demonstrates a greater focus on operational efficiency and could help potentially draw in new long-term investors. Morgan Stanley’s analysts see this as a new chapter in the company’s financial management that suggests a commitment to providing direct returns to shareholders and indicates confidence in WillScot Holdings Corporation’s (NASDAQ:WSC) future performance. The corporation announced that the first dividend of $0.07 per share will be payable on March 19, 2025, to shareholders of record as of March 5, 2025.
Overall, WSC ranks 1st on our list of the best self-storage and apartment stocks to invest in. While we acknowledge the potential of WSC as an investment, 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 WSC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
