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.
Simon Property Group (
SPG) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Simon Property Group fell $1.91 (-1.2%) to $156.02 on light volume. Throughout the day, 771,157 shares of Simon Property Group exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in price between $155.98-$158.18 after having opened the day at $156.77 as compared to the previous trading day's close of $157.93. Other companies within the Real Estate industry that declined today were:
Elbit Imaging (
EMITF), down 6.3%,
Roberts Realty Investors (
RPI), down 5.7%,
FirstService Corporation (
FSRV), down 2.3%, and
MPG Office (
MPG), down 2.3%.
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Simon Property Group, Inc. is an independent equity real estate investment trust. It engages in investment, ownership, and management of properties. The firm invests in the real estate markets across the globe. Simon Property Group has a market cap of $48.55 billion and is part of the financial sector. The company has a P/E ratio of 31.7, above the S&P 500 P/E ratio of 17.7. Shares are up 22.5% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Simon Property Group a buy, one analyst rates it a sell, and four rate it a hold.
TheStreet Ratings rates Simon Property Group as a
buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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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