AvalonBay Communities Inc (AVB): 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

AvalonBay Communities ( AVB) pushed the Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day up 0.1%. By the end of trading, AvalonBay Communities rose $2.58 (1.9%) to $135.24 on average volume. Throughout the day, 1,198,414 shares of AvalonBay Communities exchanged hands as compared to its average daily volume of 928,200 shares. The stock ranged in a price between $131.60-$136.08 after having opened the day at $132.67 as compared to the previous trading day's close of $132.66. Other companies within the Real Estate industry that increased today were: Income Opportunity Realty Investors ( IOT), up 7.0%, Doral Financial ( DRL), up 6.9%, Colonial Properties ( CLP), up 5.7% and Amrep Corporation ( AXR), up 5.4%.
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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 $17.3 billion and is part of the financial sector. The company has a P/E ratio of 65.4, above the S&P 500 P/E ratio of 17.7. Shares are down 2.2% year to date as of the close of trading on Friday. 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 negative front, Power REIT ( PW), down 9.5%, Homex Development ( HXM), down 8.1%, Vestin Realty Mortgage I ( VRTA), down 7.0% and Roberts Realty Investors ( RPI), down 5.6% , were all laggards within the real estate industry with Realty Income Corporation ( O) 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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