VNO, GGP And AGNC, 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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 60 points (0.4%) at 15,029 as of Tuesday, May 7, 2013, 12:54 PM ET. The NYSE advances/declines ratio sits at 1,907 issues advancing vs. 994 declining with 159 unchanged.

The Real Estate industry currently sits up 0.6% versus the S&P 500, which is up 0.3%. A company within the industry that fell today was Macerich Company ( MAC), up 0.57. Top gainers within the industry include Nationstar Mortgage Holdings ( NSM), up 4.7%, Dupont Fabros Technology ( DFT), up 4.2%, Icahn ( IEP), up 2.5%, W. P. Carey ( WPC), up 1.6% and Camden Property ( CPT), up 1.5%.

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

3. Vornado Realty ( VNO) is one of the companies pushing the Real Estate industry lower today. As of noon trading, Vornado Realty is down $1.25 (-1.4%) to $86.59 on average volume Thus far, 424,641 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 $83.60-$87.00 after having opened the day at $87.00 as compared to the previous trading day's close of $87.84.

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 $16.2 billion and is part of the financial sector. The company has a P/E ratio of 58.3, above the S&P 500 P/E ratio of 17.7. Shares are up 9.7% year to date as of the close of trading on Monday.

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 and good cash flow from operations. 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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2. As of noon trading, General Growth Properties ( GGP) is down $0.53 (-2.3%) to $22.80 on heavy volume Thus far, 4.5 million shares of General Growth Properties exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $22.70-$22.90 after having opened the day at $22.82 as compared to the previous trading day's close of $23.33.

General Growth Properties, Inc. operates as a real estate investment trust in the United States. It operates in two segments, Retail and Other, and Master Planned Communities. General Growth Properties has a market cap of $21.6 billion and is part of the financial sector. Shares are up 17.5% year to date as of the close of trading on Monday.

TheStreet Ratings rates General Growth Properties as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Get the full General Growth Properties Ratings Report now.

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1. As of noon trading, American Capital Agency ( AGNC) is down $0.16 (-0.5%) to $30.78 on average volume Thus far, 2.6 million shares of American Capital Agency exchanged hands as compared to its average daily volume of 6.5 million shares. The stock has ranged in price between $30.64-$31.05 after having opened the day at $30.99 as compared to the previous trading day's close of $30.94.

American Capital Agency Corp. operates as a real estate investment trust (REIT). American Capital Agency has a market cap of $12.2 billion and is part of the financial sector. The company has a P/E ratio of 11.6, below the S&P 500 P/E ratio of 17.7. Shares are up 6.1% year to date as of the close of trading on Monday.

TheStreet Ratings rates American Capital Agency as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Get the full American Capital Agency 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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