Two Harbors Investment Corp (TWO): 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

Two Harbors Investment ( TWO) pushed the Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day down 0.7%. By the end of trading, Two Harbors Investment rose $0.38 (3.5%) to $11.17 on average volume. Throughout the day, 9,894,517 shares of Two Harbors Investment exchanged hands as compared to its average daily volume of 7,682,600 shares. The stock ranged in a price between $10.75-$11.27 after having opened the day at $10.76 as compared to the previous trading day's close of $10.79. Other companies within the Real Estate industry that increased today were: Institutional Financial Markets ( IFMI), up 16.7%, ZipRealty ( ZIPR), up 8.3%, J.W. Mays ( MAYS), up 5.3% and MHI Hospitality Corporation ( MDH), up 4.5%.
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Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), residential mortgage loans, and other financial assets. Two Harbors Investment has a market cap of $4.0 billion and is part of the financial sector. The company has a P/E ratio of 8.1, below the S&P 500 P/E ratio of 17.7. Shares are down 2.6% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Two Harbors Investment a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Two Harbors Investment as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

On the negative front, Vestin Realty Mortgage II ( VRTB), down 10.3%, Ryman Hospitality Properties ( RHP), down 8.1%, American Spectrum Realty ( AQQ), down 6.7% and Stratus Properties ( STRS), down 6.6% , were all laggards within the real estate industry with Host Hotels & Resorts ( HST) 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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