Digital Realty Trust Inc. (DLR): Today's Featured Real Estate 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 Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day up 0.9%. By the end of trading, Digital Realty fell $1.32 (-2.4%) to $52.78 on average volume. Throughout the day, 1,290,617 shares of Digital Realty exchanged hands as compared to its average daily volume of 1,706,200 shares. The stock ranged in price between $52.75-$54.11 after having opened the day at $53.82 as compared to the previous trading day's close of $54.10. Other companies within the Real Estate industry that declined today were: American Realty Investors ( ARL), down 11.5%, Institutional Financial Markets ( IFMI), down 4.5%, PMC Commercial ( PCC), down 2.5% and Vestin Realty Mortgage II ( VRTB), down 2.3%.

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 $7.1 billion and is part of the financial sector. Shares are down 20.3% year to date as of the close of trading on Tuesday. 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, 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, E-House China Holdings ( EJ), up 28.3%, IFM Investments ( CTC), up 8.4%, China Housing & Land Development ( CHLN), up 6.8% and Chambers Street Properties ( CSG), up 5.0% , were all gainers within the real estate industry with Host Hotels & Resorts ( HST) 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).

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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