Ventas Inc (VTR): 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.

Ventas ( VTR) 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, Ventas rose 82 cents (1.3%) to $63.93 on average volume. Throughout the day, 1.8 million shares of Ventas exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in a price between $63-$64.01 after having opened the day at $63.40 as compared to the previous trading day's close of $63.11. Other companies within the Real Estate industry that increased today were: Supertel Hospitality ( SPPR), up 3.8%, Roberts Realty Investors ( RPI), up 3.8%, Education Realty ( EDR), up 3.6%, and Corporate Office Properties ( OFC), up 2.8%.
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Ventas, Inc. is a publicly owned real estate investment trust. The firm engages in investment, management, financing, and leasing of properties in the healthcare industry. It invests in the real estate markets of the United States and Canada. Ventas has a market cap of $18.64 billion and is part of the financial sector. The company has a P/E ratio of 42.3, above the average real estate industry P/E ratio of 37.6 and above the S&P 500 P/E ratio of 17.7. Shares are up 14.5% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Ventas a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Ventas 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, compelling growth in net income and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Impac Mortgage Holdings ( IMH), down 10.2%, Optibase ( OBAS), down 9%, Power REIT ( PW), down 8.7%, and Maui Land & Pineapple Company ( MLP), down 6.5%, were all laggards within the real estate industry with Two Harbors Investment ( TWO) 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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