Starwood Property Trust Inc. (STWD): Today's Featured Real Estate Winner

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

Starwood Property ( STWD) 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, Starwood Property rose $0.30 (1.1%) to $27.46 on average volume. Throughout the day, 1,485,838 shares of Starwood Property exchanged hands as compared to its average daily volume of 1,898,400 shares. The stock ranged in a price between $26.98-$27.52 after having opened the day at $27.26 as compared to the previous trading day's close of $27.16. Other companies within the Real Estate industry that increased today were: Institutional Financial Markets ( IFMI), up 8.5%, Elbit Imaging ( EMITF), up 6.2%, Doral Financial ( DRL), up 5.0% and Preferred Apartment Communities ( APTS), up 4.4%.
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Starwood Property Trust, Inc. engages in originating, investing in, financing, and managing commercial mortgage loans, other commercial real estate debt investments, commercial mortgage-backed securities, and other commercial real estate-related debt investments. Starwood Property has a market cap of $3.6 billion and is part of the financial sector. The company has a P/E ratio of 15.3, below the S&P 500 P/E ratio of 17.7. Shares are up 18.3% year to date as of the close of trading on Friday.

TheStreet Ratings rates Starwood Property as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, compelling growth in net income, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, Homex Development ( HXM), down 11.6%, Vestin Realty Mortgage I ( VRTA), down 7.0%, Vestin Realty Mortgage II ( VRTB), down 6.2% and American Realty Investors ( ARL), down 5.0% , were all laggards within the real estate industry with Extra Space Storage ( EXR) 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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