The Macerich Company (MAC): 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.

Macerich Company ( MAC) pushed the Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day down 0.4%. By the end of trading, Macerich Company rose $1.44 (2.5%) to $58.80 on average volume. Throughout the day, 1.2 million shares of Macerich Company exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $56.91-$58.87 after having opened the day at $57.25 as compared to the previous trading day's close of $57.36. Other companies within the Real Estate industry that increased today were: General Growth Properties ( GGP), up 9.7%, Vestin Realty Mortgage II ( VRTB), up 5.7%, American Realty Investors ( ARL), up 4.1%, and Gazit-Globe ( GZT), up 3.4%.

The Macerich Company is an independent real estate investment trust. The firm invests in the real estate markets of the United States. Macerich Company has a market cap of $7.61 billion and is part of the financial sector. The company has a P/E ratio of 33.6, above the average real estate industry P/E ratio of 25.6 and above the S&P 500 P/E ratio of 17.7. Shares are up 13.4% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Macerich Company a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Macerich Company as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Thomas Properties Group ( TPGI), down 4.5%, Whitestone REIT ( WSR), down 4.3%, Amrep Corporation ( AXR), down 4.3%, and HMG/Courtland Properties ( HMG), down 4%, were all laggards within the real estate industry with Simon Property Group ( SPG) 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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