CommonWealth REIT (CWH): 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.

CommonWealth REIT ( CWH) 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, CommonWealth REIT fell 98 cents (-4.3%) to $22.02 on heavy volume. Throughout the day, 5.9 million shares of CommonWealth REIT exchanged hands as compared to its average daily volume of 3.7 million shares. The stock ranged in price between $21.95-$22.70 after having opened the day at $22.59 as compared to the previous trading day's close of $23. Other companies within the Real Estate industry that declined today were: IFM Investments ( CTC), down 8%, Vestin Realty Mortgage II ( VRTB), down 7.2%, China Housing & Land Development ( CHLN), down 4.5%, and China HGS Real Estate ( HGSH), down 3%.
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CommonWealth REIT is a real estate investment trust launched and managed by Reit Management & Research LLC. The fund invests in the real estate markets of the United States. It seeks to invest in office buildings, industrial buildings, and leased industrial land. CommonWealth REIT has a market cap of $2.66 billion and is part of the financial sector. The company has a P/E ratio of 64.2, above the S&P 500 P/E ratio of 17.7. Shares are up 45.2% year to date as of the close of trading on Thursday. Currently there are no analysts that rate CommonWealth REIT a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates CommonWealth REIT as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and poor profit margins.

On the positive front, Altisource Residential Corporation ( RESI), up 33.3%, American Spectrum Realty ( AQQ), up 27.1%, Income Opportunity Realty Investors ( IOT), up 5.8%, and PMC Commercial ( PCC), up 5.1%, were all gainers within the real estate industry with Digital Realty ( DLR) 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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