Health Care REIT Inc. (HCN): 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.

Health Care REIT ( HCN) pushed the Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day up 0.3%. By the end of trading, Health Care REIT rose 66 cents (1.1%) to $59.70 on light volume. Throughout the day, 1.3 million shares of Health Care REIT exchanged hands as compared to its average daily volume of 2.5 million shares. The stock ranged in a price between $58.85-$59.81 after having opened the day at $59.02 as compared to the previous trading day's close of $59.04. Other companies within the Real Estate industry that increased today were: Elbit Imaging ( EMITF), up 11.3%, Optibase ( OBAS), up 7.6%, Gazit-Globe ( GZT), up 5.1%, and Vestin Realty Mortgage II ( VRTB), up 4.1%.
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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 $15.15 billion and is part of the financial sector. The company has a P/E ratio of 75.2, above the average real estate industry P/E ratio of 54.5 and above the S&P 500 P/E ratio of 17.7. Shares are up 8.3% year to date as of the close of trading on Friday. Currently there are nine analysts that rate Health Care REIT a buy, one analyst rates it a sell, and eight 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, solid stock price performance, good cash flow from operations 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 negative front, Income Opportunity Realty Investors ( IOT), down 12.6%, American Realty Investors ( ARL), down 12%, Doral Financial ( DRL), down 4.7%, and New York Mortgage ( NYMT), down 4.3%, were all laggards within the real estate industry with Annaly Capital Management ( NLY) 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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