Realty Income Corporation (O): 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.

Realty Income Corporation ( O) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day up 0.2%. By the end of trading, Realty Income Corporation fell 57 cents (-1.2%) to $46.05 on heavy volume. Throughout the day, 16.6 million shares of Realty Income Corporation exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $45.35-$46.07 after having opened the day at $45.36 as compared to the previous trading day's close of $46.62. Other companies within the Financial sector that declined today were: Broadway Financial ( BYFC), down 14.1%, Emclaire Financial Corporation ( EMCF), down 10%, Old Second Bancorp ( OSBC), down 9.7%, and Siebert Financial Corporation ( SIEB), down 8.8%.
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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 $8.25 billion and is part of the real estate industry. The company has a P/E ratio of 53.6, above the S&P 500 P/E ratio of 17.7. Shares are up 15.9% year to date as of the close of trading on Tuesday. Currently there are five analysts that rate Realty Income Corporation a buy, no analysts rate it a sell, and five 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 robust revenue growth, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Altisource Residential Corporation ( RESI), up 33.8%, Homeowners Choice ( HCI), up 19.4%, Homex Development ( HXM), up 13.6%, and China HGS Real Estate ( HGSH), up 13.3%, were all gainers within the financial sector with E*Trade Financial ( ETFC) 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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