With the COVID-19 crisis finally fading into the rearview mirror, the baseline narrative for EPR Properties (EPR) – a real estate investment trust (REIT) that focuses on entertainment-related businesses such as cineplex operators and amusement parks – appears quite compelling. Previously, under pandemic-related guidelines, non-essential activities were heavily constrained. Today, such mandates have been relaxed throughout the globe, opening the door for normal consumer activities.
Unfortunately, the market again faces a significant challenge, which might threaten the optimism for EPR stock and the broader consumer discretionary space. As Barchart contributor Rich Asplund noted, the major equity indices closed moderately lower on Thursday following a stronger-than-expected June ADP employment report. Generally, all nations seek robust labor market growth. However, in this case, the jobs print undermines the Federal Reserve’s efforts to contain stubbornly high inflation.
