Health Care REIT Inc. (HCN): 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

Health Care REIT ( HCN) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day down 2.1%. By the end of trading, Health Care REIT fell $1.69 (-2.1%) to $77.29 on heavy volume. Throughout the day, 3,962,481 shares of Health Care REIT exchanged hands as compared to its average daily volume of 2,010,000 shares. The stock ranged in price between $76.83-$80.07 after having opened the day at $79.06 as compared to the previous trading day's close of $78.98. Other companies within the Real Estate industry 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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Health Care REIT, Inc. is an independent equity real estate investment trust. The firm engages in acquiring, planning, developing, managing, repositioning and monetizing of real estate assets. It primarily invests in the real estate markets of the United States. Health Care REIT has a market cap of $20.3 billion and is part of the financial sector. The company has a P/E ratio of 106.5, above the S&P 500 P/E ratio of 17.7. Shares are up 28.9% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Health Care REIT a buy, 2 analysts rate it a sell, and 9 rate it a hold.

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

On the positive front, Alto Palermo ( APSA), down 10.7%, Optibase ( OBAS), down 6.1%, IFM Investments ( CTC), down 5.2% and New England Realty Associates ( NEN), down 5.0%.

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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