Two Harbors Investment Corp (TWO): Today's Featured Real Estate Laggard

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 Harbors Investment ( TWO) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Two Harbors Investment fell $0.13 (-1.1%) to $11.76 on average volume. Throughout the day, 6,174,404 shares of Two Harbors Investment exchanged hands as compared to its average daily volume of 7,690,900 shares. The stock ranged in price between $11.55-$11.86 after having opened the day at $11.86 as compared to the previous trading day's close of $11.89. Other companies within the Real Estate industry that declined today were: China Housing & Land Development ( CHLN), down 10.1%, Western Asset Mortgage Capital ( WMC), down 8.0%, Marlin Business Services ( MRLN), down 4.7% and MHI Hospitality Corporation ( MDH), down 4.6%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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. Currently there are 6 analysts that rate Two Harbors Investment a buy, no analysts rate it a sell, and 3 rate it a hold.

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.

On the positive front, Doral Financial ( DRL), down 8.6%, Capital ( CT), down 6.8%, Blackstone Mortgate ( BXMT), down 6.8% and IFM Investments ( CTC), down 5.6% , were all gainers within the real estate industry with Health Care REIT ( HCN) being today's featured real estate industry leader.

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).

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.
null

If you liked this article you might like

10 High-Yielding Stocks to Own Ahead of a Surprising Late Summer Market Swoon

Jim Cramer Shares Why Take-Two Interactive Has Had Such a Big Move

Jim Cramer on James Comey, Macy's, Tesla, Coca Cola, Pepsi, AMD and Take Two Interactive

3 Stocks With Dividend Yields of More Than 10%

3 Mortgage REITs With Dividend Yields of Over 10%