Vornado Realty Trust (VNO): 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.

Vornado Realty ( VNO) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day up 0.2%. By the end of trading, Vornado Realty fell $1.06 (-1.3%) to $79.88 on average volume. Throughout the day, 770,078 shares of Vornado Realty exchanged hands as compared to its average daily volume of 987,000 shares. The stock ranged in price between $79.46-$80.81 after having opened the day at $80.32 as compared to the previous trading day's close of $80.94. Other companies within the Financial sector that declined today were: Radian Group ( RDN), down 10.2%, Parke Bancorp ( PKBK), down 9.4%, First M&F ( FMFC), down 8.9%, and Nationstar Mortgage Holdings ( NSM), down 8.8%.
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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 $15.04 billion and is part of the real estate industry. The company has a P/E ratio of 36, above the S&P 500 P/E ratio of 17.7. Shares are up 5.3% year to date as of the close of trading on Friday. 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 increase in net income, revenue growth and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and feeble growth in the company's earnings per share.

On the positive front, Millennium India Acquisition Corporation ( SMCG), up 39.9%, Credit Suisse ( SCPR), up 15.9%, Strategic Hotels & Resorts ( BEE), up 13.3%, and Old Second Bancorp ( OSBC), up 11.1%, were all gainers within the financial sector with IntercontinentalExchange ( ICE) 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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