Two Harbors Investment Corp (TWO): Today's Featured Real Estate Winner

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 Harbors Investment ( TWO) pushed the Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day up 0.3%. By the end of trading, Two Harbors Investment rose $0.75 (6.5%) to $12.34 on heavy volume. Throughout the day, 12,897,627 shares of Two Harbors Investment exchanged hands as compared to its average daily volume of 7,626,900 shares. The stock ranged in a price between $11.92-$12.39 after having opened the day at $12.00 as compared to the previous trading day's close of $11.59. Other companies within the Real Estate industry that increased today were: American Spectrum Realty ( AQQ), up 16.5%, Capital ( CT), up 11.0%, Forestar Group ( FOR), up 5.9% and Thomas Properties Group ( TPGI), up 4.3%.
  • 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.

Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), residential mortgage loans, and other financial assets. Two Harbors Investment has a market cap of $4.2 billion and is part of the financial sector. The company has a P/E ratio of 9.8, below the S&P 500 P/E ratio of 17.7. Shares are up 4.6% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Two Harbors Investment a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Two Harbors Investment as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and disappointing return on equity.

On the negative front, Income Opportunity Realty Investors ( IOT), down 6.5%, China Housing & Land Development ( CHLN), down 5.2%, ZipRealty ( ZIPR), down 4.4% and JAVELIN Mortgage Investment ( JMI), down 4.2% , were all laggards within the real estate industry with Health Care REIT ( HCN) being today's real estate industry laggard.

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

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO

CBS-Viacom Battle Comes to a Head; FDA Approves Novartis Migraine Drug --ICMYI

CBS-Viacom Battle Comes to a Head; FDA Approves Novartis Migraine Drug --ICMYI

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)

Cramer and His Team Stick to Their Disciplines -- Even When It's Disappointing

Cramer and His Team Stick to Their Disciplines -- Even When It's Disappointing