Chimera Investment Corporation (CIM): Real Estate's Featured Underachiever Of The Day

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.

Chimera Investment Corporation ( CIM) 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, Chimera Investment Corporation fell 5 cents (-1.5%) to $3.19 on light volume. Throughout the day, 6.3 million shares of Chimera Investment Corporation exchanged hands as compared to its average daily volume of 12.1 million shares. The stock ranged in price between $3.19-$3.26 after having opened the day at $3.24 as compared to the previous trading day's close of $3.24. Other companies within the Real Estate industry that declined today were: E-House China Holdings ( EJ), down 3.5%, Transcontinental Realty ( TCI), down 2.9%, Supertel Hospitality ( SPPR), down 2.6%, and Icahn ( IEP), down 2.2%.
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Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. Chimera Investment Corporation has a market cap of $3.37 billion and is part of the financial sector. The company has a P/E ratio of 25.2, above the S&P 500 P/E ratio of 17.7. Shares are up 24.1% year to date as of the close of trading on Wednesday. Currently there are no analysts that rate Chimera Investment Corporation a buy, one analyst rates it a sell, and four rate it a hold.

TheStreet Ratings rates Chimera Investment Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive 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 sub par growth in net income.

On the positive front, Altisource Residential Corporation ( RESI), up 33.3%, Gramercy Capital Corporation ( GKK), up 8.1%, Texas Pacific Land ( TPL), up 6.2%, and Impac Mortgage Holdings ( IMH), up 5.7%, were all gainers within the real estate industry with Annaly Capital Management ( NLY) 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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