American Capital Agency Corp. (AGNC): 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.

American Capital Agency ( AGNC) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day down 0.8%. By the end of trading, American Capital Agency fell 91 cents (-2.6%) to $33.69 on heavy volume. Throughout the day, 11.6 million shares of American Capital Agency exchanged hands as compared to its average daily volume of 7.5 million shares. The stock ranged in price between $33.43-$34.57 after having opened the day at $34.51 as compared to the previous trading day's close of $34.60. Other companies within the Real Estate industry that declined today were: American Spectrum Realty ( AQQ), down 8.2%, Vestin Realty Mortgage I ( VRTA), down 6.6%, MPG Office ( MPG), down 6.3%, and Tree.com ( TREE), down 5.2%.
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American Capital Agency Corp. operates as a real estate investment trust (REIT). American Capital Agency has a market cap of $11.92 billion and is part of the financial sector. The company has a P/E ratio of 9.7, above the average real estate industry P/E ratio of 8.7 and below the S&P 500 P/E ratio of 17.7. Shares are up 23.2% year to date as of the close of trading on Monday. Currently there are nine analysts that rate American Capital Agency a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates American Capital Agency as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and disappointing return on equity.

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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