Senior Housing Properties Trust (SNH): 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

Senior Housing Properties ( SNH) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Senior Housing Properties fell $0.38 (-1.3%) to $28.21 on average volume. Throughout the day, 2,202,167 shares of Senior Housing Properties exchanged hands as compared to its average daily volume of 1,869,000 shares. The stock 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. Other companies within the Real Estate industry that declined today were: China HGS Real Estate ( HGSH), down 23.6%, Capital ( CT), down 10.8%, Maui Land & Pineapple Company ( MLP), down 8.7% and Gladstone Land ( LAND), down 4.5%.
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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.

On the positive front, American Spectrum Realty ( AQQ), down 6.8%, Walter Investment Management ( WAC), down 5.0%, Transcontinental Realty Investors ( TCI), down 4.6% and Education Realty ( EDR), down 3.6% , were all gainers within the real estate industry with American Capital Agency ( AGNC) 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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