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 0.6%. By the end of trading, General Growth Properties fell 21 cents (-1.1%) to $18.74 on light volume. Throughout the day, 3.9 million shares of General Growth Properties exchanged hands as compared to its average daily volume of 5.3 million shares. The stock ranged in price between $18.70-$19.04 after having opened the day at $18.97 as compared to the previous trading day's close of $18.95. Other companies within the Real Estate industry that declined today were: J.W. Mays ( MAYS), down 11.8%, Western Asset Mortgage Capital ( WMC), down 2.8%, Alto Palermo ( APSA), down 2.3%, and E-House China Holdings ( EJ), down 1.9%.
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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 $17.53 billion and is part of the financial sector. The company has a P/E ratio of -27.5, below the S&P 500 P/E ratio of 17.7. Shares are up 30.7% year to date as of the close of trading on Monday. 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, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and poor profit margins.

On the positive front, Doral Financial ( DRL), up 14.7%, American Realty Investors ( ARL), up 7.8%, ZipRealty ( ZIPR), up 7.6%, and Impac Mortgage Holdings ( IMH), up 6.9%, 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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