Newcastle Investment Corporation (NCT): 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.

Newcastle Investment Corporation ( NCT) 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, Newcastle Investment Corporation rose 13 cents (1.2%) to $10.88 on heavy volume. Throughout the day, 6.5 million shares of Newcastle Investment Corporation exchanged hands as compared to its average daily volume of 3.6 million shares. The stock ranged in a price between $10.69-$10.88 after having opened the day at $10.70 as compared to the previous trading day's close of $10.75. Other companies within the Real Estate industry that increased today were: Altisource Residential Corporation ( RESI), up 17.3%, Elbit Imaging ( EMITF), up 10.4%, Icahn ( IEP), up 9.2%, and Brookfield Residential Properties ( BRP), up 8.7%.
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Operates as a REIT investing in credit-sensitive real estate securities, including commercial and residential mortgage-backed securities and unsecured REIT debt, mostly rated BBB or BB, which it seeks to match with liabilities with respect to interest rates and maturities. Newcastle Investment Corporation has a market cap of $1.85 billion and is part of the financial sector. The company has a P/E ratio of four, below the S&P 500 P/E ratio of 17.7. Shares are up 23.8% year to date as of the close of trading on Tuesday. Currently there are five analysts that rate Newcastle Investment Corporation a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Newcastle Investment Corporation as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

On the negative front, MPG Office ( MPG), down 18%, Marlin Business Services ( MRLN), down 3.4%, IRSA Inversiones y Representaciones ( IRS), down 2.8%, and Institutional Financial Markets ( IFMI), down 2.7%, were all laggards within the real estate industry with General Growth Properties ( GGP) 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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