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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

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 0.1%. By the end of trading, Vornado Realty rose $1.11 (1.4%) to $82.86 on average volume. Throughout the day, 958,717 shares of Vornado Realty exchanged hands as compared to its average daily volume of one million shares. The stock ranged in a price between $81.80-$82.91 after having opened the day at $81.89 as compared to the previous trading day's close of $81.75. Other companies within the Real Estate industry that increased today were: SYSWIN ( SYSW), up 11.9%, Transcontinental Realty ( TCI), up 8.7%, American Spectrum Realty ( AQQ), up 8.5%, and MPG Office ( MPG), up 6.6%.

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 $15.16 billion and is part of the financial sector. The company has a P/E ratio of 51.4, above the average real estate industry P/E ratio of 41.8 and above the S&P 500 P/E ratio of 17.7. Shares are up 7.1% year to date as of the close of trading on Monday. Currently there are two analysts that rate Vornado Realty a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Vornado Realty as a buy. Among the primary strengths of the company is its reasonable valuation levels, considering its current price compared to earnings, book value and other measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

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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