Health Care REIT Inc. (HCN): 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

Health Care REIT ( HCN) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day down 0.8%. By the end of trading, Health Care REIT fell $2.17 (-3.0%) to $69.74 on heavy volume. Throughout the day, 4,544,876 shares of Health Care REIT exchanged hands as compared to its average daily volume of 2,111,900 shares. The stock ranged in price between $69.25-$71.20 after having opened the day at $71.20 as compared to the previous trading day's close of $71.91. Other companies within the Financial sector that declined today were: Amrep Corporation ( AXR), down 9.8%, Noah Holdings ( NOAH), down 7.7%, Doral Financial ( DRL), down 7.3% and First Security Group ( FSGI), down 7.2%.
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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 $19.4 billion and is part of the real estate industry. The company has a P/E ratio of 101.4, above the S&P 500 P/E ratio of 17.7. Shares are up 17.3% 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, Vestin Realty Mortgage II ( VRTB), down 27.7%, China HGS Real Estate ( HGSH), down 10.3%, Capital ( CT), down 9.6% and Blackstone Mortgate ( BXMT), down 9.6% , were all gainers within the financial sector with Huntington ( HBAN) being today's featured financial sector leader.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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