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 0.5%. By the end of trading, Digital Realty fell $0.77 (-1.4%) to $52.26 on average volume. Throughout the day, 1,761,051 shares of Digital Realty exchanged hands as compared to its average daily volume of 1,916,400 shares. The stock ranged in price between $51.57-$53.22 after having opened the day at $53.05 as compared to the previous trading day's close of $53.03. Other companies within the Real Estate industry that declined today were: Gaming and Leisure Properties ( GLPI), down 21.6%, ZipRealty ( ZIPR), down 6.1%, Vestin Realty Mortgage I ( VRTA), down 5.0% and Rouse Properties ( RSE), down 4.6%.

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 $6.6 billion and is part of the financial sector. The company has a P/E ratio of 24.1, above the S&P 500 P/E ratio of 17.7. Shares are up 8.0% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Digital Realty a buy, no analysts rate it a sell, and 10 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 revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.

On the positive front, Desarrolladora Homex SAB de CV ADR ( HXM), up 49.1%, Trade Street Residential ( TSRE), up 12.3%, Starwood Property ( STWD), up 4.6% and Icahn ( IEP), up 4.2% , were all gainers within the real estate industry with Boston Properties ( BXP) 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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