ARMOUR Residential REIT Inc (ARR): 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.

ARMOUR Residential REIT ( ARR) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day up 0.5%. By the end of trading, ARMOUR Residential REIT fell 11 cents (-1.6%) to $6.56 on heavy volume. Throughout the day, 14.3 million shares of ARMOUR Residential REIT exchanged hands as compared to its average daily volume of 8.3 million shares. The stock ranged in price between $6.49-$6.61 after having opened the day at $6.58 as compared to the previous trading day's close of $6.67. Other companies within the Real Estate industry that declined today were: HMG/Courtland Properties ( HMG), down 11.5%, E-House China Holdings ( EJ), down 3.9%, Institutional Financial Markets ( IFMI), down 3.4%, and Kennedy-Wilson Holdings ( KW), down 3.1%.
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ARMOUR Residential REIT, Inc. is a real estate investment trust launched and managed by ARMOUR Residential Management LLC. It invests in the real estate markets of the United States. ARMOUR Residential REIT has a market cap of $2.09 billion and is part of the financial sector. The company has a P/E ratio of 6.9, below the S&P 500 P/E ratio of 17.7. Shares are up 4.3% year to date as of the close of trading on Tuesday. Currently there are two analysts that rate ARMOUR Residential REIT a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates ARMOUR Residential REIT as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

On the positive front, Altisource Residential Corporation ( RESI), up 33.5%, Doral Financial ( DRL), up 13.8%, ( TREE), up 10.1%, and China HGS Real Estate ( HGSH), up 8.6%, were all gainers within the real estate industry with Invesco Mortgage Capital ( IVR) 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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