Vornado Realty Trust (VNO): Today's Featured Real Estate Winner

Vornado Realty ( VNO) pushed the Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day up 0.2%. By the end of trading, Vornado Realty rose 50 cents (0.6%) to $83.85 on light volume. Throughout the day, 727,536 shares of Vornado Realty exchanged hands as compared to its average daily volume of one million shares. The stock ranged in a price between $82.99-$84.15 after having opened the day at $83.18 as compared to the previous trading day's close of $83.35. Other companies within the Real Estate industry that increased today were: American Realty Investors ( ARL), up 14.7%, SYSWIN ( SYSW), up 7.1%, IFM Investments ( CTC), up 5.5%, and Newcastle Investment Corporation ( NCT), up 5.4%.

Vornado Realty Trust is a privately owned real estate investment trust. The trust engages in investment, ownership, and management of commercial real estate. It invests in the real estate markets of United States. The trust primarily invests in office, industrial and retail properties. Vornado Realty has a market cap of $15.34 billion and is part of the financial sector. The company has a P/E ratio of 40.9, above the average real estate industry P/E ratio of 35.5 and above the S&P 500 P/E ratio of 17.7. Shares are up 8.4% year to date as of the close of trading on Friday. Currently there are three analysts that rate Vornado Realty a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Vornado Realty as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the negative front, MPG Office ( MPG), down 6.9%, Homex Development ( HXM), down 6.4%, China Housing & Land Development ( CHLN), down 5.3%, and American Spectrum Realty ( AQQ), down 4.4%, were all laggards within the real estate industry with Host Hotels & Resorts ( HST) being today's real estate industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the real estate industry could consider iShares Dow Jones US Real Estate ( IYR) while those bearish on the real estate industry could consider ProShares Short Real Estate Fund ( REK).
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