IEP, SNH And DLR, Pushing Real Estate Industry Downward

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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 100 points (0.7%) at 14,812 as of Monday, April 29, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,173 issues advancing vs. 733 declining with 124 unchanged.

The Real Estate industry currently sits up 0.5% versus the S&P 500, which is up 0.8%. On the negative front, top decliners within the industry include China HGS Real Estate ( HGSH), down 20.36, and Howard Hughes ( HHC), down 1.39. Top gainers within the industry include Extra Space Storage ( EXR), up 1.8%, Brookfield Asset Management ( BAM), up 1.8%, Duke Realty ( DRE), up 1.5%, Taubman Centers ( TCO), up 1.5% and CBRE Group ( CBG), up 1.4%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Icahn ( IEP) is one of the companies pushing the Real Estate industry lower today. As of noon trading, Icahn is down $1.87 (-2.6%) to $71.01 on average volume Thus far, 114,906 shares of Icahn exchanged hands as compared to its average daily volume of 211,100 shares. The stock has ranged in price between $70.53-$75.00 after having opened the day at $74.30 as compared to the previous trading day's close of $72.88.

Icahn Enterprises L.P. engages in the investment, automotive, gaming, railcar, food packaging, metals, real estate, and home fashion businesses in the United States and internationally. Its Investment segment provides investment advisory, and administrative and back office services. Icahn has a market cap of $8.1 billion and is part of the financial sector. The company has a P/E ratio of 19.9, above the S&P 500 P/E ratio of 17.7. Shares are up 67.1% year to date as of the close of trading on Friday.

TheStreet Ratings rates Icahn as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and disappointing return on equity. Get the full Icahn Ratings Report now.

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2. As of noon trading, Senior Housing Properties ( SNH) is down $0.64 (-2.2%) to $27.95 on average volume Thus far, 1.0 million shares of Senior Housing Properties exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $27.79-$28.50 after having opened the day at $28.41 as compared to the previous trading day's close of $28.59.

Senior Housing Properties Trust, a real estate investment trust (REIT), primarily invests in senior housing properties in the United States. The trust invests in hospitals, nursing homes, senior apartments, independent living properties, and assisted living properties. Senior Housing Properties has a market cap of $5.4 billion and is part of the financial sector. The company has a P/E ratio of 35.7, above the S&P 500 P/E ratio of 17.7. Shares are up 20.9% year to date as of the close of trading on Friday.

TheStreet Ratings rates Senior Housing Properties as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, solid stock price performance, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Senior Housing Properties Ratings Report now.

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1. As of noon trading, Digital Realty ( DLR) is down $0.30 (-0.4%) to $69.56 on average volume Thus far, 553,590 shares of Digital Realty exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $68.54-$69.59 after having opened the day at $69.56 as compared to the previous trading day's close of $69.86.

Digital Realty Trust, Inc., a real estate investment trust (REIT), through its controlling interest in Digital Realty Trust, L.P., engages in the ownership, acquisition, development, redevelopment, and management of technology-related real estate. Digital Realty has a market cap of $9.2 billion and is part of the financial sector. The company has a P/E ratio of 48.5, above the S&P 500 P/E ratio of 17.7. Shares are up 2.9% year to date as of the close of trading on Friday.

TheStreet Ratings rates Digital Realty as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, good cash flow from operations, compelling growth in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Digital Realty 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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