General Growth Properties Inc (GGP): 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.

General Growth Properties ( GGP) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day up 0.5%. By the end of trading, General Growth Properties fell 44 cents (-2.2%) to $19.22 on average volume. Throughout the day, six million shares of General Growth Properties exchanged hands as compared to its average daily volume of 5.4 million shares. The stock ranged in price between $18.82-$19.30 after having opened the day at $19.07 as compared to the previous trading day's close of $19.66. Other companies within the Real Estate industry that declined today were: W. P. Carey ( WPC), down 5.7%, Roberts Realty Investors ( RPI), down 5.4%, Nationstar Mortgage Holdings ( NSM), down 5.3%, and Walter Investment Management ( WAC), down 3.6%.
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General Growth Properties, Inc. operates as a real estate investment trust in the United States. It operates in two segments, Retail and Other, and Master Planned Communities. General Growth Properties has a market cap of $17.96 billion and is part of the financial sector. The company has a P/E ratio of -37.5, below the S&P 500 P/E ratio of 17.7. Shares are up 34% year to date as of the close of trading on Wednesday. Currently there are two analysts that rate General Growth Properties a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates General Growth Properties as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

On the positive front, Impac Mortgage Holdings ( IMH), up 30.9%, Maui Land & Pineapple Company ( MLP), up 12.3%, Institutional Financial Markets ( IFMI), up 7.3%, and MHI Hospitality Corporation ( MDH), up 5.5%, were all gainers within the real estate industry with American Express ( AXP) being today's featured real estate industry leader.

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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