CommonWealth REIT (CWH): 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

CommonWealth REIT ( CWH) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day up 0.8%. By the end of trading, CommonWealth REIT fell $0.32 (-1.5%) to $21.31 on light volume. Throughout the day, 1,270,133 shares of CommonWealth REIT exchanged hands as compared to its average daily volume of 4,084,300 shares. The stock ranged in price between $21.31-$21.70 after having opened the day at $21.63 as compared to the previous trading day's close of $21.63. Other companies within the Financial sector that declined today were: Glen Burnie Bancorp ( GLBZ), down 7.1%, Macatawa Bank Corporation ( MCBC), down 6.0%, American Independence Corporation ( AMIC), down 5.1% and Southwest Georgia Financial Corporation ( SGB), down 4.8%.
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CommonWealth REIT is a real estate investment trust launched and managed by Reit Management & Research LLC. The fund invests in the real estate markets of the United States. It seeks to invest in office buildings, industrial buildings, and leased industrial land. CommonWealth REIT has a market cap of $2.5 billion and is part of the real estate industry. The company has a P/E ratio of 60.1, above the S&P 500 P/E ratio of 17.7. Shares are up 36.6% year to date as of the close of trading on Monday. Currently there are no analysts that rate CommonWealth REIT a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates CommonWealth REIT as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and poor profit margins.

On the positive front, Atlantic Coast Financial ( ACFC), down 20.7%, Noah Holdings ( NOAH), down 13.9%, First Acceptance Corporation ( FAC), down 10.4% and First Security Group ( FSGI), down 8.0% , were all gainers within the financial sector with UBS ( UBS) 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).

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