HCP Inc (HCP) In The Real Estate Spotlight Today

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.

HCP ( HCP) pushed the Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day up 0.1%. By the end of trading, HCP rose 56 cents (1.1%) to $52.02 on average volume. Throughout the day, two million shares of HCP exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in a price between $51.19-$52.02 after having opened the day at $51.36 as compared to the previous trading day's close of $51.46. Other companies within the Real Estate industry that increased today were: Altis Resident ( RESI), up 30.5%, Institutional Financial Markets ( IFMI), up 10.9%, Alto Palermo ( APSA), up 5.3%, and Inland Real Estate Corporation ( IRC), up 4.3%.
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HCP, Inc. is an independent hybrid real estate investment trust. The fund invests in real estate markets of the United States. HCP has a market cap of $23.59 billion and is part of the financial sector. The company has a P/E ratio of 28.4, above the S&P 500 P/E ratio of 17.7. Shares are up 14% year to date as of the close of trading on Thursday. Currently there are four analysts that rate HCP a buy, two analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates HCP as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Homex Development ( HXM), down 10.8%, Medical Properties ( MPW), down 7.4%, China Housing & Land Development ( CHLN), down 4.7%, and BRASILAGRO - CIA Bras de Prop Agricolas ( LND), down 4%, were all laggards within the real estate industry with Nationstar Mortgage Holdings ( NSM) being today's real estate industry laggard.

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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