Digital Realty Trust Inc. (DLR): Today's Featured Financial 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.

Digital Realty ( DLR) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day down 0.3%. By the end of trading, Digital Realty fell $2.97 (-4.6%) to $61.15 on heavy volume. Throughout the day, 4.7 million shares of Digital Realty exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $59.98-$64.21 after having opened the day at $63.23 as compared to the previous trading day's close of $64.12. Other companies within the Financial sector that declined today were: Jacksonville Bancorp Inc (FL ( JAXB), down 18.5%, Duff & Phelps Corporation Class A ( DUF), down 8.8%, Carolina Trust Bank ( CART), down 7.5%, and iStar Financial ( SFI), down 6.2%.
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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 $7.77 billion and is part of the real estate industry. The company has a P/E ratio of 45.2, below the average real estate industry P/E ratio of 45.5 and above the S&P 500 P/E ratio of 17.7. Shares are down 3.8% year to date as of the close of trading on Thursday. Currently there are eight analysts that rate Digital Realty a buy, two analysts rate it a sell, and five 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 compelling growth in net income, revenue growth, reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Siebert Financial Corporation ( SIEB), up 12.2%, Life Partners Holdings ( LPHI), up 12%, J.W. Mays ( MAYS), up 11.1%, and Bank of the James Financial Group ( BOTJ), up 10%, were all gainers within the financial sector with Marsh & McLennan Companies ( MMC) being today's featured financial sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial sector could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial sector could consider Proshares Short Financials ( SEF).

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