Public Storage (PSA): 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.

Public Storage ( PSA) pushed the Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day down 1.3%. By the end of trading, Public Storage rose $2.31 (1.6%) to $143.34 on heavy volume. Throughout the day, 1.4 million shares of Public Storage exchanged hands as compared to its average daily volume of 597,000 shares. The stock ranged in a price between $140.31-$144.83 after having opened the day at $140.64 as compared to the previous trading day's close of $141.03. Other companies within the Real Estate industry that increased today were: Institutional Financial Markets ( IFMI), up 31.6%, Supertel Hospitality ( SPPR), up 6.1%, China Housing & Land Development ( CHLN), up 5.5%, and Impac Mortgage Holdings ( IMH), up 5.2%.
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Public Storage operates as a real estate investment trust (REIT). It engages in the acquisition, development, ownership, and operation of self-storage facilities in the United States and Europe. Public Storage has a market cap of $24.03 billion and is part of the financial sector. The company has a P/E ratio of 44.6, above the S&P 500 P/E ratio of 17.7. Shares are up 4.1% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Public Storage a buy, three analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Public Storage as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Doral Financial ( DRL), down 14.1%, Brookfield Residential Properties ( BRP), down 8.9%, ZipRealty ( ZIPR), down 7.7%, and E-House China Holdings ( EJ), down 6.3%, were all laggards within the real estate industry with American Capital Agency ( AGNC) 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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