HCP Inc (HCP): 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

HCP ( HCP) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day down 1.5%. By the end of trading, HCP fell $0.52 (-1.1%) to $45.36 on average volume. Throughout the day, 2,455,878 shares of HCP exchanged hands as compared to its average daily volume of 2,610,400 shares. The stock ranged in price between $45.28-$46.45 after having opened the day at $46.27 as compared to the previous trading day's close of $45.88. Other companies within the Real Estate industry that declined today were: IFM Investments ( CTC), down 10.3%, Icahn ( IEP), down 9.8%, Vestin Realty Mortgage II ( VRTB), down 9.6% and AG Mortgage Investment ( MITT), down 6.7%.
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HCP, Inc. is an independent hybrid real estate investment trust. The fund invests in real estate markets of the United States. HCP has a market cap of $21.2 billion and is part of the financial sector. The company has a P/E ratio of 24.3, above the S&P 500 P/E ratio of 17.7. Shares are up 1.6% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate HCP a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates HCP as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Stratus Properties ( STRS), down 5.3%, Institutional Financial Markets ( IFMI), down 4.9%, American Spectrum Realty ( AQQ), down 3.7% and HMG/Courtland Properties ( HMG), down 3.5%.

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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