American Capital Agency Corp. (AGNC): 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

American Capital Agency ( AGNC) 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, American Capital Agency fell $0.83 (-3.5%) to $22.62 on heavy volume. Throughout the day, 17,497,204 shares of American Capital Agency exchanged hands as compared to its average daily volume of 8,919,200 shares. The stock ranged in price between $22.22-$23.32 after having opened the day at $23.27 as compared to the previous trading day's close of $23.45. Other companies within the Real Estate industry that declined today were: IFM Investments ( CTC), down 16.1%, China Housing & Land Development ( CHLN), down 11.3%, Supertel Hospitality ( SPPR), down 10.2% and Maui Land & Pineapple Company ( MLP), down 8.5%.
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American Capital Agency Corp. operates as a real estate investment trust (REIT). American Capital Agency has a market cap of $9.3 billion and is part of the financial sector. The company has a P/E ratio of 10.9, below the S&P 500 P/E ratio of 17.7. Shares are down 18.9% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate American Capital Agency a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates American Capital Agency as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

On the positive front, Amrep Corporation ( AXR), down 6.3%, Chambers Street Properties ( CSG), down 5.5%, HMG/Courtland Properties ( HMG), down 2.2% and Transcontinental Realty Investors ( TCI), down 1.8% , were all gainers within the real estate industry with Equity Residential ( EQR) 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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