Digital Realty Trust Inc. (DLR): Today's Featured Financial 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.

Digital Realty ( DLR) pushed the Financial sector higher today making it today's featured financial winner. The sector as a whole closed the day up 0.1%. By the end of trading, Digital Realty rose $1.17 (1.8%) to $65.71 on average volume. Throughout the day, 1.7 million shares of Digital Realty exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in a price between $65.08-$65.85 after having opened the day at $65.24 as compared to the previous trading day's close of $64.54. Other companies within the Financial sector that increased today were: First Financial Service Corporation ( FFKY), up 16.1%, Carolina Trust Bank ( CART), up 15.6%, Village Bank and Trust Financial Corporatio ( VBFC), up 13.6%, and Old Second Bancorp ( OSBC), up 11.9%.
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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 $7.94 billion and is part of the real estate industry. The company has a P/E ratio of 43.8, above the S&P 500 P/E ratio of 17.7. Shares are down 3.2% year to date as of the close of trading on Friday. Currently there are eight analysts that rate Digital Realty a buy, two analysts rate it a sell, and five 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, good cash flow from operations, 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.

On the negative front, Oak Ridge Financial Services ( BKOR), down 13.5%, BNC Bancorp ( BNCN), down 7.9%, Hampton Roads Bankshares ( HMPR), down 7.6%, and Federated National ( FNHC), down 7.6%, were all laggards within the financial sector with Regions Financial Corporation ( RF) being today's financial sector laggard.

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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