Vornado Realty Trust (VNO): 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.

Vornado Realty ( VNO) 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, Vornado Realty rose 84 cents (1.1%) to $80.14 on average volume. Throughout the day, 1.3 million shares of Vornado Realty exchanged hands as compared to its average daily volume of 926,300 shares. The stock ranged in a price between $78.47-$80.53 after having opened the day at $79.10 as compared to the previous trading day's close of $79.30. Other companies within the Real Estate industry that increased today were: Brookfield Residential Properties ( BRP), up 5.4%, Walter Investment Management ( WAC), up 5.3%, Realogy Holdings ( RLGY), up 4.9%, and MPG Office ( MPG), up 4.8%.
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Vornado Realty Trust is a privately owned real estate investment trust. The trust engages in investment, ownership, and management of commercial real estate. It invests in the real estate markets of United States. The trust primarily invests in office, industrial and retail properties. Vornado Realty has a market cap of $14.64 billion and is part of the financial sector. The company has a P/E ratio of 49.2, above the average real estate industry P/E ratio of 40.4 and above the S&P 500 P/E ratio of 17.7. Shares are up 3.2% year to date as of the close of trading on Tuesday. Currently there are two analysts that rate Vornado Realty a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Vornado Realty as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

On the negative front, Optibase ( OBAS), down 11.6%, ZipRealty ( ZIPR), down 7.1%, Transcontinental Realty ( TCI), down 6.2%, and Vestin Realty Mortgage II ( VRTB), down 6.1%, were all laggards within the real estate industry with Ventas ( VTR) 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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