4 Stocks Pushing The Real Estate Industry Lower

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

One out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading down 9 points (-0.1%) at 12,786 as of Tuesday, Nov. 20, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,471 issues advancing vs. 1,424 declining with 128 unchanged.

The Real Estate industry currently sits up 0.2% versus the S&P 500, which is up 0.0%. A company within the industry that fell today was Public Storage ( PSA), up 0.7%. Top gainers within the industry include Realty Income Corporation ( O), up 1.1%, Weyerhaeuser ( WY), up 0.8%, Brookfield Asset Management ( BAM), up 0.7%, Host Hotels & Resorts ( HST), up 0.6% and HCP ( HCP), up 0.5%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. AvalonBay Communities ( AVB) is one of the companies pushing the Real Estate industry lower today. As of noon trading, AvalonBay Communities is down $0.90 (-0.7%) to $129.07 on average volume Thus far, 335,217 shares of AvalonBay Communities exchanged hands as compared to its average daily volume of 600,700 shares. The stock has ranged in price between $128.40-$129.90 after having opened the day at $129.81 as compared to the previous trading day's close of $129.97.

AvalonBay Communities, Inc. engages in the development, redevelopment, acquisition, ownership, and operation of multifamily communities in the United States. AvalonBay Communities has a market cap of $12.6 billion and is part of the financial sector. The company has a P/E ratio of 47.6, above the S&P 500 P/E ratio of 17.7. Shares are down 0.5% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate AvalonBay Communities a buy, 2 analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates AvalonBay Communities as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full AvalonBay Communities Ratings Report now.

3. As of noon trading, Equity Residential ( EQR) is down $0.26 (-0.5%) to $54.44 on light volume Thus far, 546,037 shares of Equity Residential exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $54.07-$54.68 after having opened the day at $54.68 as compared to the previous trading day's close of $54.70.

Equity Residential, a real estate investment trust (REIT), engages in the acquisition, development, and management of multifamily properties in the United States. Equity Residential has a market cap of $16.4 billion and is part of the financial sector. The company has a P/E ratio of 81.1, above the S&P 500 P/E ratio of 17.7. Shares are down 4.8% year to date as of the close of trading on Monday. Currently there are 5 analysts that rate Equity Residential a buy, 1 analyst rates it a sell, and 11 rate it a hold.

TheStreet Ratings rates Equity Residential as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, increase in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Equity Residential Ratings Report now.

2. As of noon trading, Annaly Capital Management ( NLY) is down $0.15 (-1.0%) to $14.59 on light volume Thus far, 4.9 million shares of Annaly Capital Management exchanged hands as compared to its average daily volume of 14.8 million shares. The stock has ranged in price between $14.58-$14.76 after having opened the day at $14.75 as compared to the previous trading day's close of $14.74.

Annaly Capital Management, Inc., a real estate investment trust, engages in the ownership, management, and financing of a portfolio of investment securities. Annaly Capital Management has a market cap of $14.4 billion and is part of the financial sector. The company has a P/E ratio of 9.8, below the S&P 500 P/E ratio of 17.7. Shares are down 7.3% year to date as of the close of trading on Monday. Currently there are 4 analysts that rate Annaly Capital Management a buy, 4 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Annaly Capital Management as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels, growth in earnings per share, expanding profit margins 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 Annaly Capital Management Ratings Report now.

1. As of noon trading, American Capital Agency ( AGNC) is down $0.16 (-0.5%) to $30.97 on light volume Thus far, 2.1 million shares of American Capital Agency exchanged hands as compared to its average daily volume of 7.6 million shares. The stock has ranged in price between $30.76-$31.25 after having opened the day at $31.02 as compared to the previous trading day's close of $31.12.

American Capital Agency Corp. operates as a real estate investment trust (REIT). American Capital Agency has a market cap of $10.6 billion and is part of the financial sector. The company has a P/E ratio of 12.9, below the S&P 500 P/E ratio of 17.7. Shares are up 10.8% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate American Capital Agency a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates American Capital Agency as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Get the full American Capital Agency Ratings Report now.

If you are interested in one of these 4 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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