AvalonBay Communities Inc (AVB): Today's Featured Financial 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

AvalonBay Communities ( AVB) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day down 1.2%. By the end of trading, AvalonBay Communities fell $2.90 (-2.0%) to $138.56 on heavy volume. Throughout the day, 1,466,661 shares of AvalonBay Communities exchanged hands as compared to its average daily volume of 849,800 shares. The stock ranged in price between $138.04-$141.83 after having opened the day at $141.82 as compared to the previous trading day's close of $141.46. Other companies within the Financial sector that declined today were: Vestin Realty Mortgage II ( VRTB), down 11.4%, China Housing & Land Development ( CHLN), down 9.5%, Blackstone Mortgate ( BXMT), down 8.8% and Capital ( CT), down 8.8%.
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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 $18.2 billion and is part of the real estate industry. The company has a P/E ratio of 68.9, above the S&P 500 P/E ratio of 17.7. Shares are up 4.3% year to date as of the close of trading on Tuesday. 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 robust revenue growth and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Millennium India Acquisition Corporation ( SMCG), down 27.1%, MSB Financial Corporation ( MSBF), down 13.0%, Alto Palermo ( APSA), down 10.7% and Village Bank and Trust Financial Corporatio ( VBFC), down 9.7%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial sector could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial sector could consider Proshares Short Financials ( SEF).

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