4 Stocks Dragging In The Real Estate Industry

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 79 points (0.5%) at 15,295 as of Wednesday, May 15, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,703 issues advancing vs. 1,237 declining with 128 unchanged.

The Real Estate industry currently sits up 0.3% versus the S&P 500, which is up 0.6%. Top gainers within the industry include Omega Healthcare Investors ( OHI), up 1.8%, CBL & Associates Properties ( CBL), up 1.8%, CBRE Group ( CBG), up 1.4%, Public Storage ( PSA), up 1.3% and Ventas ( VTR), up 1.4%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. Hatteras Financial Corporation ( HTS) is one of the companies pushing the Real Estate industry lower today. As of noon trading, Hatteras Financial Corporation is down $0.39 (-1.5%) to $25.96 on average volume Thus far, 481,473 shares of Hatteras Financial Corporation exchanged hands as compared to its average daily volume of 724,300 shares. The stock has ranged in price between $25.80-$26.23 after having opened the day at $26.13 as compared to the previous trading day's close of $26.35.

Hatteras Financial Corp. operates as an externally-managed mortgage real estate investment trust (REIT) in the United States. Hatteras Financial Corporation has a market cap of $2.6 billion and is part of the financial sector. The company has a P/E ratio of 7.8, below the S&P 500 P/E ratio of 17.7. Shares are up 6.6% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Hatteras Financial Corporation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and disappointing return on equity. Get the full Hatteras Financial Corporation Ratings Report now.

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3. As of noon trading, Brookfield Office Properties ( BPO) is down $0.12 (-0.6%) to $19.05 on light volume Thus far, 229,754 shares of Brookfield Office Properties exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $18.92-$19.13 after having opened the day at $19.08 as compared to the previous trading day's close of $19.17.

Brookfield Properties Corporation is a publicly owned real estate investment firm. The firm engages in the ownership, development, and management of premier commercial properties. It also provides ancillary real estate service businesses, such as tenant service and amenities. Brookfield Office Properties has a market cap of $9.6 billion and is part of the financial sector. The company has a P/E ratio of 9.0, below the S&P 500 P/E ratio of 17.7. Shares are up 12.7% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Brookfield Office Properties as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. 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 Brookfield Office Properties Ratings Report now.

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2. As of noon trading, Two Harbors Investment ( TWO) is down $0.19 (-1.6%) to $11.70 on light volume Thus far, 2.9 million shares of Two Harbors Investment exchanged hands as compared to its average daily volume of 7.7 million shares. The stock has ranged in price between $11.63-$11.86 after having opened the day at $11.86 as compared to the previous trading day's close of $11.89.

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 $4.3 billion and is part of the financial sector. The company has a P/E ratio of 8.7, below the S&P 500 P/E ratio of 17.7. Shares are up 7.3% year to date as of the close of trading on Tuesday.

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, increase in stock price during the past year and attractive valuation levels. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good. Get the full Two Harbors Investment Ratings Report now.

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1. As of noon trading, Digital Realty ( DLR) is down $0.46 (-0.7%) to $64.99 on average volume Thus far, 917,233 shares of Digital Realty exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $64.71-$65.61 after having opened the day at $65.48 as compared to the previous trading day's close of $65.45.

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 $8.6 billion and is part of the financial sector. The company has a P/E ratio of 45.7, above the S&P 500 P/E ratio of 17.7. Shares are down 3.6% year to date as of the close of trading on Tuesday.

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.

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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