5 Stocks Dragging The 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 lower today with the Dow Jones Industrial Average ( ^DJI) trading down 5 points (0.0%) at 15,100 as of Thursday, May 9, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,176 issues advancing vs. 1,742 declining with 136 unchanged.

The Real Estate industry currently sits down 0.34 versus the S&P 500, which is down 0.21. On the negative front, top decliners within the industry include Dupont Fabros Technology ( DFT), down 4.08, CommonWealth REIT ( CWH), down 3.66, Brookfield Asset Management ( BAM), down 1.56, Regency Centers Corporation ( REG), down 1.28 and SL Green Realty Corporation ( SLG), down 0.95. A company within the industry that increased today was Weyerhaeuser ( WY), up 1.37.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. Digital Realty ( DLR) is one of the companies pushing the Real Estate industry lower today. As of noon trading, Digital Realty is down $2.59 (-3.8%) to $66.43 on heavy volume Thus far, 6.0 million shares of Digital Realty exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $63.94-$66.70 after having opened the day at $66.12 as compared to the previous trading day's close of $69.02.

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 $8.8 billion and is part of the financial sector. The company has a P/E ratio of 47.5, above the S&P 500 P/E ratio of 17.7. Shares are up 1.7% year to date as of the close of trading on Wednesday.

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 and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Digital Realty Ratings Report now.

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4. As of noon trading, HCP ( HCP) is down $0.50 (-0.9%) to $52.04 on heavy volume Thus far, 1.7 million shares of HCP exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $51.87-$52.67 after having opened the day at $52.60 as compared to the previous trading day's close of $52.53.

HCP, Inc. is an independent hybrid real estate investment trust. The fund invests in real estate markets of the United States. HCP has a market cap of $24.5 billion and is part of the financial sector. The company has a P/E ratio of 28.1, above the S&P 500 P/E ratio of 17.7. Shares are up 16.3% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates HCP as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full HCP Ratings Report now.

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3. As of noon trading, Boston Properties ( BXP) is down $0.52 (-0.5%) to $110.29 on light volume Thus far, 414,109 shares of Boston Properties exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $109.87-$110.79 after having opened the day at $110.58 as compared to the previous trading day's close of $110.81.

Boston Properties, Inc., a real estate investment trust (REIT), together with its subsidiaries, engages in the ownership and development of office properties. Boston Properties has a market cap of $16.7 billion and is part of the financial sector. The company has a P/E ratio of 69.8, above the S&P 500 P/E ratio of 17.7. Shares are up 4.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Boston Properties as a buy. Among the primary strengths of the company is its revenue growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Boston Properties Ratings Report now.

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2. As of noon trading, Host Hotels & Resorts ( HST) is down $0.12 (-0.7%) to $18.33 on light volume Thus far, 2.5 million shares of Host Hotels & Resorts exchanged hands as compared to its average daily volume of 7.3 million shares. The stock has ranged in price between $18.23-$18.52 after having opened the day at $18.52 as compared to the previous trading day's close of $18.45.

Host Hotels & Resorts, Inc. is a publicly owned real estate investment trust (REIT). The firm primarily engages in the ownership and operation of hotel properties. It invests in the real estate markets of United States. Host Hotels & Resorts has a market cap of $13.7 billion and is part of the financial sector. The company has a P/E ratio of 142.8, above the S&P 500 P/E ratio of 17.7. Shares are up 17.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Host Hotels & Resorts as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Host Hotels & Resorts Ratings Report now.

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1. As of noon trading, Simon Property Group ( SPG) is down $0.61 (-0.3%) to $179.73 on average volume Thus far, 479,340 shares of Simon Property Group exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $179.05-$180.85 after having opened the day at $180.85 as compared to the previous trading day's close of $180.34.

Simon Property Group, Inc. is an independent equity real estate investment trust. It engages in investment, ownership, and management of properties. The firm invests in the real estate markets across the globe. Simon Property Group has a market cap of $55.5 billion and is part of the financial sector. The company has a P/E ratio of 51.8, above the S&P 500 P/E ratio of 17.7. Shares are up 14.1% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Simon Property Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Simon Property Group Ratings Report now.

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If you are interested in one of these 3 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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