AvalonBay Communities Inc (AVB): 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.

AvalonBay Communities ( AVB) pushed the Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day up 0.4%. By the end of trading, AvalonBay Communities rose $2.12 (1.7%) to $128.49 on heavy volume. Throughout the day, 2.1 million shares of AvalonBay Communities exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in a price between $126.13-$130.48 after having opened the day at $126.31 as compared to the previous trading day's close of $126.37. Other companies within the Real Estate industry that increased today were: Altisource Residential Corporation ( RESI), up 24.1%, China HGS Real Estate ( HGSH), up 11%, Capital ( CT), up 9.3%, and New England Realty Associates ( NEN), up 7.5%.
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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 $12.3 billion and is part of the financial sector. The company has a P/E ratio of 29.2, above the S&P 500 P/E ratio of 17.7. Shares are down 7.1% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate AvalonBay Communities a buy, one analyst rates it a sell, and seven 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 the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, BRT Realty ( BRT), down 7.4%, American Spectrum Realty ( AQQ), down 5.3%, Stratus Properties ( STRS), down 4.5%, and China Housing & Land Development ( CHLN), down 2.4%, were all laggards within the real estate industry with Invesco Mortgage Capital ( IVR) 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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