5 Real Estate Stocks Dragging The Industry Down

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

One out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading down 30 points (-0.2%) at 15,089 as of Monday, May 13, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,245 issues advancing vs. 1,704 declining with 112 unchanged.

The Real Estate industry currently sits up 0.1% versus the S&P 500, which is unchanged. On the negative front, top decliners within the industry include Annaly Capital Management ( NLY), down 2.97, and Two Harbors Investment ( TWO), down 1.74. Top gainers within the industry include Omega Healthcare Investors ( OHI), up 2.1%, Realty Income Corporation ( O), up 1.8%, Digital Realty ( DLR), up 1.6%, Senior Housing Properties ( SNH), up 1.4% and Plum Creek Timber ( PCL), up 0.7%.

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

5. Chimera Investment Corporation ( CIM) is one of the companies pushing the Real Estate industry lower today. As of noon trading, Chimera Investment Corporation is down $0.07 (-2.1%) to $3.24 on light volume Thus far, 2.5 million shares of Chimera Investment Corporation exchanged hands as compared to its average daily volume of 9.1 million shares. The stock has ranged in price between $3.24-$3.29 after having opened the day at $3.29 as compared to the previous trading day's close of $3.31.

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. Chimera Investment Corporation has a market cap of $3.4 billion and is part of the financial sector. The company has a P/E ratio of 25.3, above the S&P 500 P/E ratio of 17.7. Shares are up 26.1% year to date as of the close of trading on Friday.

TheStreet Ratings rates Chimera Investment Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Chimera Investment Corporation Ratings Report now.

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4. As of noon trading, Invesco Mortgage Capital ( IVR) is down $0.48 (-2.3%) to $20.19 on average volume Thus far, 1.1 million shares of Invesco Mortgage Capital exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $20.12-$20.64 after having opened the day at $20.64 as compared to the previous trading day's close of $20.67.

Invesco Mortgage Capital Inc., a real estate investment trust (REIT), focuses on investing in, financing, and managing residential and commercial mortgage-backed securities and mortgage loans. It invests in residential mortgage-backed securities for which a U.S. Invesco Mortgage Capital has a market cap of $2.8 billion and is part of the financial sector. The company has a P/E ratio of 7.5, below the S&P 500 P/E ratio of 17.7. Shares are up 6.2% year to date as of the close of trading on Friday.

TheStreet Ratings rates Invesco Mortgage Capital as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and increase in net income. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share and disappointing return on equity. Get the full Invesco Mortgage Capital Ratings Report now.

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3. As of noon trading, ARMOUR Residential REIT ( ARR) is down $0.16 (-2.6%) to $6.08 on heavy volume Thus far, 8.8 million shares of ARMOUR Residential REIT exchanged hands as compared to its average daily volume of 9.2 million shares. The stock has ranged in price between $6.00-$6.25 after having opened the day at $6.25 as compared to the previous trading day's close of $6.24.

ARMOUR Residential REIT, Inc. is a real estate investment trust launched and managed by ARMOUR Residential Management LLC. It invests in the real estate markets of the United States. ARMOUR Residential REIT has a market cap of $2.4 billion and is part of the financial sector. The company has a P/E ratio of 8.0, below the S&P 500 P/E ratio of 17.7. Shares are down 1.9% year to date as of the close of trading on Friday.

TheStreet Ratings rates ARMOUR Residential REIT 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 a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share. Get the full ARMOUR Residential REIT Ratings Report now.

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2. As of noon trading, Host Hotels & Resorts ( HST) is down $0.13 (-0.7%) to $18.44 on light volume Thus far, 1.9 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 $18.34-$18.52 after having opened the day at $18.46 as compared to the previous trading day's close of $18.57.

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 141.2, above the S&P 500 P/E ratio of 17.7. Shares are up 17.1% year to date as of the close of trading on Friday.

TheStreet Ratings rates Host Hotels & Resorts 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, growth in earnings per share, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Host Hotels & Resorts Ratings Report now.

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.

1. As of noon trading, American Capital Agency ( AGNC) is down $1.11 (-3.7%) to $28.93 on heavy volume Thus far, 14.8 million shares of American Capital Agency exchanged hands as compared to its average daily volume of 6.7 million shares. The stock has ranged in price between $28.55-$29.98 after having opened the day at $29.90 as compared to the previous trading day's close of $30.04.

American Capital Agency Corp. operates as a real estate investment trust (REIT). American Capital Agency has a market cap of $12.2 billion and is part of the financial sector. The company has a P/E ratio of 14.4, below the S&P 500 P/E ratio of 17.7. Shares are up 6.9% year to date as of the close of trading on Friday.

TheStreet Ratings rates American Capital Agency as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Get the full American Capital Agency Ratings Report now.

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.

If you are interested in one of these 5 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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