AvalonBay Communities Inc (AVB): 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

AvalonBay Communities ( AVB) 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, AvalonBay Communities rose $1.50 (1.1%) to $134.79 on light volume. Throughout the day, 631,409 shares of AvalonBay Communities exchanged hands as compared to its average daily volume of 855,000 shares. The stock ranged in a price between $132.81-$135.00 after having opened the day at $133.20 as compared to the previous trading day's close of $133.29. Other companies within the Real Estate industry that increased today were: Transcontinental Realty Investors ( TCI), up 17.6%, Capital ( CT), up 11.8%, Blackstone Mortgate ( BXMT), up 11.8% and American Spectrum Realty ( AQQ), up 10.1%.
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AvalonBay Communities, Inc. engages in the development, redevelopment, acquisition, ownership, and operation of multifamily communities in the United States. AvalonBay Communities has a market cap of $17.1 billion and is part of the financial sector. The company has a P/E ratio of 48.6, above the S&P 500 P/E ratio of 17.7. Shares are down 2.2% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate AvalonBay Communities a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates AvalonBay Communities as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, America First Tax Exempt Investors L.P ( ATAX), down 6.1%, American Capital Agency ( AGNC), down 3.3%, ARMOUR Residential REIT ( ARR), down 3.2% and BRT Realty ( BRT), down 3.0% , were all laggards within the real estate industry with Annaly Capital Management ( NLY) 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).

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