Digital Realty Trust Inc. (DLR): Today's Featured Real Estate Winner

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 Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day up 0.4%. By the end of trading, Digital Realty rose $0.68 (1.2%) to $55.01 on light volume. Throughout the day, 1,342,719 shares of Digital Realty exchanged hands as compared to its average daily volume of 1,938,000 shares. The stock ranged in a price between $53.92-$55.06 after having opened the day at $54.20 as compared to the previous trading day's close of $54.33. Other companies within the Real Estate industry that increased today were: Alexander & Baldwin ( ALEX), up 76.9%, Altis Resident ( RESI), up 30.6%, Vestin Realty Mortgage II ( VRTB), up 16.0% and Homex Development ( HXM), up 9.4%.

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 $7.0 billion and is part of the financial sector. Shares are down 20.0% year to date as of the close of trading on Friday. Currently there are 8 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 and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Institutional Financial Markets ( IFMI), down 5.9%, American Realty Investors ( ARL), down 5.7%, BRT Realty ( BRT), down 4.6% and IFM Investments ( CTC), down 4.3% , were all laggards within the real estate industry with Realty Income Corporation ( O) 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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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