AvalonBay Communities Inc (AVB): Today's Featured Financial 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.

AvalonBay Communities ( AVB) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day up 0.1%. By the end of trading, AvalonBay Communities fell $1.51 (-1.1%) to $132.72 on average volume. Throughout the day, 1.2 million shares of AvalonBay Communities exchanged hands as compared to its average daily volume of 912,900 shares. The stock ranged in price between $132.69-$134.71 after having opened the day at $134.11 as compared to the previous trading day's close of $134.23. Other companies within the Financial sector that declined today were: Credit Suisse ( DGAZ), down 12.1%, Homex Development ( HXM), down 10.6%, Porter Bancorp ( PBIB), down 10.1%, and Harleysville Savings Financial Corporation ( HARL), down 9.7%.
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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 $12.99 billion and is part of the real estate industry. The company has a P/E ratio of 49.1, above the S&P 500 P/E ratio of 17.7. Shares are up 2.8% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate AvalonBay Communities a buy, one analyst rates it a sell, and five 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. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Life Partners Holdings ( LPHI), up 16%, Income Opportunity Realty Investors ( IOT), up 13.9%, Paulson Capital ( PLCC), up 13.8%, and MSB Financial Corporation ( MSBF), up 13.3%, were all gainers within the financial sector with American Express ( AXP) being today's featured financial sector leader.

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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