Realty Income Corporation (O): Today's Featured Real Estate 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.

Realty Income Corporation ( O) pushed the Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day up 0.5%. By the end of trading, Realty Income Corporation rose 42 cents (1%) to $41.75 on heavy volume. Throughout the day, 2.7 million shares of Realty Income Corporation exchanged hands as compared to its average daily volume of 885,200 shares. The stock ranged in a price between $40.92-$42.11 after having opened the day at $41.33 as compared to the previous trading day's close of $41.33. Other companies within the Real Estate industry that increased today were: Nationstar Mortgage Holdings ( NSM), up 16.9%, IFM Investments ( CTC), up 15.1%, Transcontinental Realty ( TCI), up 15.1%, and Income Opportunity Realty Investors ( IOT), up 12.8%.
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Realty Income Corporation engages in the acquisition and ownership of commercial retail real estate properties in the United States. The company leases its retail properties primarily to regional and national retail chain store operators. Realty Income Corporation has a market cap of $5.47 billion and is part of the financial sector. The company has a P/E ratio of 44.6, 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 Friday. Currently there are three analysts that rate Realty Income Corporation a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Realty Income Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Amrep Corporation ( AXR), down 12.1%, InnSuites Hospitality ( IHT), down 11.2%, Institutional Financial Markets ( IFMI), down 10.2%, and American Spectrum Realty ( AQQ), down 7.7%, were all laggards within the real estate industry with American Capital Agency ( AGNC) being today's real estate industry laggard.

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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