Nationstar Mortgage Holdings Inc (NSM): 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.

Nationstar Mortgage Holdings ( NSM) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Nationstar Mortgage Holdings fell $1.14 (-2.9%) to $37.60 on light volume. Throughout the day, 804,413 shares of Nationstar Mortgage Holdings exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in price between $37.49-$39 after having opened the day at $38.95 as compared to the previous trading day's close of $38.74. Other companies within the Real Estate industry that declined today were: ZipRealty ( ZIPR), down 7.7%, China HGS Real Estate ( HGSH), down 6.3%, InnSuites Hospitality ( IHT), down 6.1%, and American Spectrum Realty ( AQQ), down 6.1%.
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National Semiconductor Corporation, a semiconductor company, designs, develops, manufactures, and markets analog and mixed-signal integrated circuits and sub-systems. Nationstar Mortgage Holdings has a market cap of $3.48 billion and is part of the financial sector. The company has a P/E ratio of 18.2, above the S&P 500 P/E ratio of 17.7. Shares are up 25% year to date as of the close of trading on Wednesday. Currently there are four analysts that rate Nationstar Mortgage Holdings a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Nationstar Mortgage Holdings as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Altisource Residential Corporation ( RESI), up 35.3%, Forestar Group ( FOR), up 5.2%, Strategic Hotels & Resorts ( BEE), up 4.8%, and Tree.com ( TREE), up 4.5%, were all gainers within the real estate industry with Weyerhaeuser ( WY) 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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Strong On High Volume: Nationstar Mortgage Holdings (NSM)