Realty Income Corporation (O): 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

Realty Income Corporation ( O) pushed the Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day up 0.8%. By the end of trading, Realty Income Corporation rose $1.08 (2.0%) to $55.09 on heavy volume. Throughout the day, 3,739,348 shares of Realty Income Corporation exchanged hands as compared to its average daily volume of 1,789,500 shares. The stock ranged in a price between $53.91-$55.09 after having opened the day at $54.16 as compared to the previous trading day's close of $54.01. Other companies within the Real Estate industry that increased today were: Vestin Realty Mortgage I ( VRTA), up 14.4%, Doral Financial ( DRL), up 8.9%, American Spectrum Realty ( AQQ), up 6.9% and Capital ( CT), up 6.6%.
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Realty Income Corporation engages in the acquisition and ownership of commercial retail real estate properties in the United States. The company leases its retail properties primarily to regional and national retail chain store operators. Realty Income Corporation has a market cap of $10.6 billion and is part of the financial sector. The company has a P/E ratio of 67.0, above the S&P 500 P/E ratio of 17.7. Shares are up 34.3% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Realty Income Corporation a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Realty Income Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Preferred Apartment Communities ( APTS), down 3.5%, Brookfield Office Properties Canada ( BOXC), down 3.1%, China Housing & Land Development ( CHLN), down 3.0% and Home Loan Servicing Solutions ( HLSS), down 2.1%.

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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