Digital Realty Trust Inc. (DLR): Today's Featured Financial 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

Digital Realty ( DLR) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day up 1.0%. By the end of trading, Digital Realty fell $0.77 (-1.1%) to $68.40 on average volume. Throughout the day, 1,328,987 shares of Digital Realty exchanged hands as compared to its average daily volume of 1,366,500 shares. The stock ranged in price between $68.39-$69.87 after having opened the day at $69.70 as compared to the previous trading day's close of $69.17. Other companies within the Financial sector that declined today were: Credit Suisse ( DOIL), down 10.4%, American Capital Agency ( AGNC), down 7.4%, OptimumBank Holdings ( OPHC), down 6.2% and Central Federal ( CFBK), down 5.7%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $9.0 billion and is part of the real estate industry. The company has a P/E ratio of 48.2, above the S&P 500 P/E ratio of 17.7. Shares are up 1.9% year to date as of the close of trading on Thursday. Currently there are 7 analysts that rate Digital Realty a buy, 1 analyst rates it a sell, and 7 rate it a hold.

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.

On the positive front, Manhattan Bridge Capital ( LOAN), down 20.7%, China Housing & Land Development ( CHLN), down 20.2%, Homeowners Choice ( HCI), down 15.8% and First Financial Northwest ( FFNW), down 10.4% , were all gainers within the financial sector with State Street ( STT) being today's featured financial sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial sector could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial sector could consider Proshares Short Financials ( SEF).

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.

null

More from Markets

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Aceto's Search for Deal May Be Slowed by DOJ Subpoena

Aceto's Search for Deal May Be Slowed by DOJ Subpoena

Dow and S&P 500 Finish Higher Amid Strong Corporate Earnings

Dow and S&P 500 Finish Higher Amid Strong Corporate Earnings

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk