Realty Income Corporation (O): 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

Realty Income Corporation ( O) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Realty Income Corporation fell $0.83 (-1.8%) to $44.62 on heavy volume. Throughout the day, 3,444,308 shares of Realty Income Corporation exchanged hands as compared to its average daily volume of 1,951,700 shares. The stock ranged in price between $44.53-$45.89 after having opened the day at $45.35 as compared to the previous trading day's close of $45.45. Other companies within the Real Estate industry that declined today were: 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%.
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Realty Income Corporation is a publicly traded real estate investment trust. It invests in the real estate markets of the United States. The firm makes investments in commercial real estate. Realty Income Corporation was founded in 1969 and is based in Escondido, California. Realty Income Corporation has a market cap of $9.2 billion and is part of the financial sector. The company has a P/E ratio of 57.6, above the S&P 500 P/E ratio of 17.7. Shares are up 13.0% year to date as of the close of trading on Friday. Currently there are 3 analysts that rate Realty Income Corporation a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Realty Income Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Income Opportunity Realty Investors ( IOT), down 7.0%, Doral Financial ( DRL), down 6.9%, Colonial Properties ( CLP), down 5.7% and Amrep Corporation ( AXR), down 5.4% , were all gainers within the real estate industry with AvalonBay Communities ( AVB) being today's featured real estate industry leader.

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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