Digital Realty Trust Inc. (DLR): Today's Featured Financial Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Digital Realty ( DLR) pushed the Financial sector lower today making it today's featured Financial laggard. The sector as a whole closed the day down 0.1%. By the end of trading, Digital Realty fell $4.71 (-7.5%) to $58.28 on heavy volume. Throughout the day, 5,699,234 shares of Digital Realty exchanged hands as compared to its average daily volume of 1,735,000 shares. The stock ranged in price between $56.07-$65.43 after having opened the day at $63.74 as compared to the previous trading day's close of $62.99. Other companies within the Financial sector that declined today were: Homex Development ( HXM), down 30.6%, Bank Bradesco ( BBDO), down 10.2%, Cash Store Financial Services ( CSFS), down 7.0% and Roberts Realty Investors ( RPI), down 6.9%.

Digital Realty Trust, Inc., a real estate investment trust (REIT), through its controlling interest in Digital Realty Trust, L.P., engages in the ownership, acquisition, development, redevelopment, and management of technology-related real estate. Digital Realty has a market cap of $8.1 billion and is part of the real estate industry. Shares are down 7.0% year to date as of the close of trading on Thursday. Currently there are 7 analysts that rate Digital Realty a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Digital Realty as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Paulson Capital ( PLCC), up 86.3%, Porter Bancorp ( PBIB), up 25.6%, Xoom ( XOOM), up 12.0% and IFM Investments ( CTC), up 6.6% , were all gainers within the financial sector with Two Harbors Investment ( TWO) being today's featured financial sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial sector could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial sector could consider Proshares Short Financials ( SEF).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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