Vornado Realty Trust (VNO): 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

Vornado Realty ( VNO) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Vornado Realty fell $1.02 (-1.2%) to $86.82 on average volume. Throughout the day, 1,069,097 shares of Vornado Realty exchanged hands as compared to its average daily volume of 1,006,400 shares. The stock 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. Other companies within the Real Estate industry that declined today were: China HGS Real Estate ( HGSH), down 3.9%, IFM Investments ( CTC), down 3.2%, American Spectrum Realty ( AQQ), down 2.7% and General Growth Properties ( GGP), down 2.2%.
  • 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.

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. Currently there are 4 analysts that rate Vornado Realty a buy, no analysts rate it a sell, and 4 rate it a hold.

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.

On the positive front, Elbit Imaging ( EMITF), down 7.1%, Nationstar Mortgage Holdings ( NSM), down 6.0%, Homex Development ( HXM), down 3.9% and Dupont Fabros Technology ( DFT), down 3.7% , were all gainers within the real estate industry with Boston Properties ( BXP) 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).

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

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%