Digital Realty Trust Inc. (DLR): 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.

Digital Realty ( DLR) pushed the Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day down 0.2%. By the end of trading, Digital Realty rose 90 cents (1.3%) to $68.27 on average volume. Throughout the day, 1.5 million shares of Digital Realty exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in a price between $66.70-$68.46 after having opened the day at $67.26 as compared to the previous trading day's close of $67.37. Other companies within the Real Estate industry that increased today were: IFM Investments ( CTC), up 18.2%, China Housing & Land Development ( CHLN), up 4.3%, Elbit Imaging ( EMITF), up 4.2%, and Gramercy Capital Corporation ( GKK), up 4%.
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Digital Realty Trust, Inc., a real estate investment trust (REIT), through its controlling interest in Digital Realty Trust, L.P., engages in the ownership, acquisition, development, redevelopment, and management of technology-related real estate. Digital Realty has a market cap of $8.39 billion and is part of the financial sector. The company has a P/E ratio of 48.8, below the average real estate industry P/E ratio of 49.1 and above the S&P 500 P/E ratio of 17.7. Shares are up 1% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate Digital Realty a buy, two analysts rate it a sell, and four rate it a hold.

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

On the negative front, American Realty Investors ( ARL), down 8.6%, Income Opportunity Realty Investors ( IOT), down 8.6%, Impac Mortgage Holdings ( IMH), down 6.2%, and BRT Realty ( BRT), down 6%, were all laggards within the real estate industry with American Express ( AXP) 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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