Vornado Realty Trust (VNO): Today's Featured Real Estate 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.

Vornado Realty ( VNO) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Vornado Realty fell $1.20 (-1.4%) to $83.64 on average volume. Throughout the day, 982,016 shares of Vornado Realty exchanged hands as compared to its average daily volume of one million shares. The stock ranged in price between $83.55-$84.82 after having opened the day at $84.70 as compared to the previous trading day's close of $84.84. Other companies within the Real Estate industry that declined today were: Vestin Realty Mortgage I ( VRTA), down 9.1%, InnSuites Hospitality ( IHT), down 6.5%, Government Properties Income ( GOV), down 6%, and Gramercy Capital Corporation ( GKK), down 4.3%.
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Vornado Realty Trust is a privately owned real estate investment trust. The trust engages in investment, ownership, and management of commercial real estate. It invests in the real estate markets of United States. The trust primarily invests in office, industrial and retail properties. Vornado Realty has a market cap of $15.73 billion and is part of the financial sector. The company has a P/E ratio of 56.5, above the S&P 500 P/E ratio of 17.7. Shares are up 5.9% year to date as of the close of trading on Monday. Currently there are three analysts that rate Vornado Realty a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Vornado Realty as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. 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 35.7%, Elbit Imaging ( EMITF), up 20.2%, Doral Financial ( DRL), up 10.8%, and Capital ( CT), up 7.6%, were all gainers within the real estate industry with AvalonBay Communities ( AVB) being today's featured real estate industry leader.

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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