3 Stocks Pushing The Real Estate Industry Higher

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 163 points (1.2%) at 13,275 as of Tuesday, Nov. 6, 2012, 12:34 PM ET. The NYSE advances/declines ratio sits at 2,126 issues advancing vs. 762 declining with 145 unchanged.

The Real Estate industry currently sits down 0.2% versus the S&P 500, which is up 1.1%. A company within the industry that increased today was American Express ( AXP), up 1.6%. On the negative front, top decliners within the industry include Nationstar Mortgage Holdings ( NSM), down 6.1%, Icahn ( IEP), down 1.0%, Hospitality Properties ( HPT), down 2.6% and Federal Realty Investment ( FRT), down 0.8%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry higher today:

3. CBRE Group ( CBG) is one of the companies pushing the Real Estate industry higher today. As of noon trading, CBRE Group is up $0.28 (1.6%) to $18.00 on light volume Thus far, 783,724 shares of CBRE Group exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $17.70-$18.03 after having opened the day at $17.81 as compared to the previous trading day's close of $17.72.

CBRE Group, Inc. operates as a commercial real estate services company worldwide. CBRE Group has a market cap of $5.8 billion and is part of the financial sector. The company has a P/E ratio of 21.4, above the S&P 500 P/E ratio of 17.7. Shares are up 15.3% year to date as of the close of trading on Monday. Currently there are 5 analysts that rate CBRE Group a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates CBRE Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full CBRE Group Ratings Report now.

2. As of noon trading, Digital Realty ( DLR) is up $0.98 (1.6%) to $60.26 on heavy volume Thus far, 1.5 million shares of Digital Realty exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $59.64-$60.67 after having opened the day at $59.79 as compared to the previous trading day's close of $59.28.

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 $7.3 billion and is part of the financial sector. The company has a P/E ratio of 40.8, above the S&P 500 P/E ratio of 17.7. Shares are down 11.1% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate Digital Realty a buy, 2 analysts rate it a sell, and 5 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 robust revenue growth, reasonable valuation levels, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Digital Realty Ratings Report now.

1. As of noon trading, HCP ( HCP) is up $0.47 (1.1%) to $43.96 on light volume Thus far, 904,425 shares of HCP exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $43.68-$44.02 after having opened the day at $43.70 as compared to the previous trading day's close of $43.49.

HCP, Inc. is an independent hybrid real estate investment trust. The fund invests in real estate markets of the United States. HCP has a market cap of $19.8 billion and is part of the financial sector. The company has a P/E ratio of 29.1, above the S&P 500 P/E ratio of 17.7. Shares are up 5.0% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate HCP a buy, 4 analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates HCP as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, expanding profit margins, good cash flow from operations and increase in stock price during the past year. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full HCP Ratings Report now.

If you are interested in one of these 3 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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