Health Care REIT Inc. (HCN): Today's Featured Real Estate Laggard

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.

Health Care REIT ( HCN) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day up 0.9%. By the end of trading, Health Care REIT fell 86 cents (-1.4%) to $58.50 on average volume. Throughout the day, 1.9 million shares of Health Care REIT exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $58.48-$59.94 after having opened the day at $59.69 as compared to the previous trading day's close of $59.36. Other companies within the Real Estate industry that declined today were: Impac Mortgage Holdings ( IMH), down 13.4%, China Housing & Land Development ( CHLN), down 4.2%, Elbit Imaging ( EMITF), down 3.9%, and Maui Land & Pineapple Company ( MLP), down 3.5%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Health Care REIT, Inc. is an independent equity real estate investment trust. The firm engages in acquiring, planning, developing, managing, repositioning and monetizing of real estate assets. It primarily invests in the real estate markets of the United States. Health Care REIT has a market cap of $12.55 billion and is part of the financial sector. The company has a P/E ratio of 74, above the average real estate industry P/E ratio of 53.6 and above the S&P 500 P/E ratio of 17.7. Shares are up 8.9% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate Health Care REIT a buy, one analyst rates it a sell, and nine rate it a hold.

TheStreet Ratings rates Health Care REIT as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Arbor Realty ( ABR), up 10.5%, W.P. Carey ( WPC), up 6.3%, American Spectrum Realty ( AQQ), up 5.8%, and St. Joe Corporation ( JOE), up 5.7%, were all gainers within the real estate industry with Boston Properties ( BXP) being today's featured real estate industry leader.

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).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

Analysts' Actions -- Alaska Air, Canon, Greenlight Capital, Johnson Controls, Welltower and More

REITs Will Be All Right Despite Rising Rates

Bullish and Bearish Reversals in the Market

Welltower Tops Fourth Quarter Estimates

Shakeups at 2 REITs Could Benefit Investors, but It May Take Time