Equity Residential (EQR): 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

Equity Residential ( EQR) pushed the Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day down 0.8%. By the end of trading, Equity Residential rose $1.05 (1.8%) to $60.18 on heavy volume. Throughout the day, 10,308,712 shares of Equity Residential exchanged hands as compared to its average daily volume of 1,938,900 shares. The stock ranged in a price between $58.05-$60.32 after having opened the day at $58.41 as compared to the previous trading day's close of $59.13. Other companies within the Real Estate industry that increased today were: Capital ( CT), up 6.8%, Blackstone Mortgate ( BXMT), up 6.8%, Elbit Imaging ( EMITF), up 6.6% and Alto Palermo ( APSA), up 5.5%.
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Equity Residential, a real estate investment trust (REIT), engages in the acquisition, development, and management of multifamily properties in the United States. Equity Residential has a market cap of $21.9 billion and is part of the financial sector. The company has a P/E ratio of 110.5, above the S&P 500 P/E ratio of 17.7. Shares are up 7.2% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Equity Residential a buy, 1 analyst rates it a sell, and 11 rate it a hold.

TheStreet Ratings rates Equity Residential as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, poor profit margins and weak operating cash flow.

On the negative front, China HGS Real Estate ( HGSH), down 7.5%, Homex Development ( HXM), down 6.5%, Icahn ( IEP), down 5.4% and Universal Health Realty Income ( UHT), down 5.0% , were all laggards within the real estate industry with Simon Property Group ( SPG) being today's real estate industry laggard.

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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