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 down 0.2%. By the end of trading, Digital Realty rose $0.61 (1.1%) to $55.74 on average volume. Throughout the day, 1,613,185 shares of Digital Realty exchanged hands as compared to its average daily volume of 1,625,900 shares. The stock ranged in a price between $54.90-$56.12 after having opened the day at $55.00 as compared to the previous trading day's close of $55.13. Other companies within the Real Estate industry that increased today were: Trade Street Residential ( TSRE), up 7.6%, Maui Land & Pineapple Company ( MLP), up 4.3%, Select Income REIT ( SIR), up 3.8% and IRSA Inversiones y Representaciones ( IRS), up 3.5%.

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 $7.3 billion and is part of the financial sector. Shares are down 18.7% 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 hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.

On the negative front, American Spectrum Realty ( AQQ), down 10.2%, Institutional Financial Markets ( IFMI), down 8.5%, IFM Investments ( CTC), down 5.3% and Vestin Realty Mortgage II ( VRTB), down 5.2% , were all laggards within the real estate industry with Weyerhaeuser ( WY) 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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