Two Harbors Investment Corp (TWO): 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.

Two Harbors Investment ( TWO) pushed the Real Estate industry higher today making it today's featured real estate winner. The industry as a whole closed the day down 1.2%. By the end of trading, Two Harbors Investment rose $0.14 (1.5%) to $9.45 on heavy volume. Throughout the day, 8,811,133 shares of Two Harbors Investment exchanged hands as compared to its average daily volume of 4,227,400 shares. The stock ranged in a price between $9.40-$9.70 after having opened the day at $9.45 as compared to the previous trading day's close of $9.31. Other companies within the Real Estate industry that increased today were: Gaming and Leisure Properties ( GLPI), up 8.0%, InnSuites Hospitality ( IHT), up 6.8%, Forestar Group ( FOR), up 4.7% and LGI Homes ( LGIH), up 3.9%.

Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), residential mortgage loans, and other financial assets. Two Harbors Investment has a market cap of $3.3 billion and is part of the financial sector. The company has a P/E ratio of 5.5, below the S&P 500 P/E ratio of 17.7. Shares are down 16.0% year to date as of the close of trading on Wednesday. Currently there are 9 analysts that rate Two Harbors Investment a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Two Harbors Investment as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and a generally disappointing performance in the stock itself.

On the negative front, China HGS Real Estate ( HGSH), down 13.2%, Vestin Realty Mortgage I ( VRTA), down 9.3%, Impac Mortgage Holdings ( IMH), down 6.1% and Doral Financial ( DRL), down 5.4% , were all laggards within the real estate industry with General Growth Properties ( GGP) 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).

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