5 Stocks Dragging In The Real Estate Industry

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 52 points (-0.4%) at 14,567 as of Thursday, April 18, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,288 issues advancing vs. 1,600 declining with 135 unchanged.

The Real Estate industry currently sits down 0.24 versus the S&P 500, which is down 0.48. Top gainers within the industry include Nationstar Mortgage Holdings ( NSM), up 1.4%, Icahn ( IEP), up 0.5% and National Retail Properties ( NNN), up 0.9%.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. Newcastle Investment Corporation ( NCT) is one of the companies pushing the Real Estate industry lower today. As of noon trading, Newcastle Investment Corporation is down $0.23 (-2.2%) to $10.06 on average volume Thus far, 2.6 million shares of Newcastle Investment Corporation exchanged hands as compared to its average daily volume of 4.6 million shares. The stock has ranged in price between $10.05-$10.31 after having opened the day at $10.27 as compared to the previous trading day's close of $10.29.

Newcastle Investment Corp. operates as a real estate investment and finance company in the United States. Newcastle Investment Corporation has a market cap of $2.7 billion and is part of the financial sector. The company has a P/E ratio of 3.6, below the S&P 500 P/E ratio of 17.7. Shares are up 18.5% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Newcastle Investment Corporation as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good. Get the full Newcastle Investment Corporation Ratings Report now.

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4. As of noon trading, Vornado Realty ( VNO) is down $1.32 (-1.5%) to $84.94 on average volume Thus far, 447,754 shares of Vornado Realty exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $84.91-$86.29 after having opened the day at $86.25 as compared to the previous trading day's close of $86.26.

Vornado Realty Trust is a privately owned real estate investment trust. The trust engages in investment, ownership, and management of commercial real estate. It invests in the real estate markets of United States. The trust primarily invests in office, industrial and retail properties. Vornado Realty has a market cap of $16.3 billion and is part of the financial sector. The company has a P/E ratio of 58.4, above the S&P 500 P/E ratio of 17.7. Shares are up 7.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Vornado Realty as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable 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 somewhat disappointing return on equity. Get the full Vornado Realty Ratings Report now.

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3. As of noon trading, Ventas ( VTR) is down $0.49 (-0.6%) to $77.04 on average volume Thus far, 770,644 shares of Ventas exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $77.00-$77.66 after having opened the day at $77.63 as compared to the previous trading day's close of $77.53.

Ventas, Inc. is a publicly owned real estate investment trust. The firm engages in investment, management, financing, and leasing of properties in the healthcare industry. It invests in the real estate markets of the United States and Canada. Ventas has a market cap of $22.7 billion and is part of the financial sector. The company has a P/E ratio of 74.8, above the S&P 500 P/E ratio of 17.7. Shares are up 19.8% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Ventas as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Ventas Ratings Report now.

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2. As of noon trading, Prologis ( PLD) is down $0.47 (-1.1%) to $40.54 on light volume Thus far, 714,632 shares of Prologis exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $40.52-$41.09 after having opened the day at $41.00 as compared to the previous trading day's close of $41.01.

Prologis Inc. is an independent equity real estate investment trust. It invests in the real estate markets across the globe. The firm engages in the ownership, development, management, and leasing of industrial distribution and retail properties. Prologis has a market cap of $19.1 billion and is part of the financial sector. Shares are up 12.4% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Prologis as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow. Get the full Prologis Ratings Report now.

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1. As of noon trading, HCP ( HCP) is down $0.62 (-1.2%) to $51.33 on average volume Thus far, 1.3 million shares of HCP exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $51.33-$51.97 after having opened the day at $51.90 as compared to the previous trading day's close of $51.95.

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 $23.8 billion and is part of the financial sector. The company has a P/E ratio of 28.7, above the S&P 500 P/E ratio of 17.7. Shares are up 15.0% year to date as of the close of trading on Wednesday.

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. Get the full HCP Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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