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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 14 points (0.1%) at 15,368 as of Monday, May 20, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,885 issues advancing vs. 1,048 declining with 118 unchanged.

The Real Estate industry currently sits up 0.1% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the industry include ARMOUR Residential REIT ( ARR), down 2.41, Hatteras Financial Corporation ( HTS), down 1.44 and MFA Financial ( MFA), down 1.27. Top gainers within the industry include Strategic Hotels & Resorts ( BEE), up 2.7%, Icahn ( IEP), up 0.8%, SL Green Realty Corporation ( SLG), up 1.2%, Plum Creek Timber ( PCL), up 0.7% and Macerich Company ( MAC), up 0.7%.

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

5. Two Harbors Investment ( TWO) is one of the companies pushing the Real Estate industry lower today. As of noon trading, Two Harbors Investment is down $0.22 (-1.9%) to $11.70 on light volume Thus far, 1.9 million shares of Two Harbors Investment exchanged hands as compared to its average daily volume of 7.5 million shares. The stock has ranged in price between $11.67-$11.95 after having opened the day at $11.90 as compared to the previous trading day's close of $11.92.

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 8.6, below the S&P 500 P/E ratio of 17.7. Shares are up 7.6% year to date as of the close of trading on Friday.

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, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year. Get the full Two Harbors Investment Ratings Report now.

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4. As of noon trading, Realty Income Corporation ( O) is down $0.41 (-0.7%) to $54.68 on light volume Thus far, 484,519 shares of Realty Income Corporation exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $54.42-$54.98 after having opened the day at $54.98 as compared to the previous trading day's close of $55.09.

Realty Income Corporation is a publicly traded real estate investment trust. It invests in the real estate markets of the United States. The firm makes investments in commercial real estate. Realty Income Corporation was founded in 1969 and is based in Escondido, California. 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 66.7, above the S&P 500 P/E ratio of 17.7. Shares are up 37.0% year to date as of the close of trading on Friday.

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, solid stock price performance, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Realty Income Corporation Ratings Report now.

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3. As of noon trading, Host Hotels & Resorts ( HST) is down $0.26 (-1.4%) to $18.51 on light volume Thus far, 2.3 million shares of Host Hotels & Resorts exchanged hands as compared to its average daily volume of 7.2 million shares. The stock has ranged in price between $18.49-$18.80 after having opened the day at $18.70 as compared to the previous trading day's close of $18.77.

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 $13.9 billion and is part of the financial sector. The company has a P/E ratio of 143.8, above the S&P 500 P/E ratio of 17.7. Shares are up 19.8% 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 increase in stock price during the past year, revenue growth, 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.

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2. As of noon trading, Annaly Capital Management ( NLY) is down $0.16 (-1.1%) to $14.85 on light volume Thus far, 3.2 million shares of Annaly Capital Management exchanged hands as compared to its average daily volume of 9.2 million shares. The stock has ranged in price between $14.84-$14.99 after having opened the day at $14.99 as compared to the previous trading day's close of $15.01.

Annaly Capital Management, Inc. owns, manages, and finances a portfolio of real estate related investments in United States. Annaly Capital Management has a market cap of $14.2 billion and is part of the financial sector. The company has a P/E ratio of 8.9, 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 Annaly Capital Management as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Annaly Capital Management 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 $0.58 (-2.0%) to $29.07 on average volume Thus far, 3.6 million shares of American Capital Agency exchanged hands as compared to its average daily volume of 7.3 million shares. The stock has ranged in price between $29.01-$29.58 after having opened the day at $29.52 as compared to the previous trading day's close of $29.65.

American Capital Agency Corp. operates as a real estate investment trust (REIT). American Capital Agency has a market cap of $11.7 billion and is part of the financial sector. The company has a P/E ratio of 13.7, below the S&P 500 P/E ratio of 17.7. Shares are up 2.1% 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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