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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