NSM, HCN And O, 3 Real Estate Stocks Pushing The Industry Lower

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.

One out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading down 3 points (0.0%) at 16,578 as of Thursday, May 1, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,778 issues advancing vs. 1,187 declining with 180 unchanged.

The Real Estate industry currently is unchanged today versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the industry include Ocwen Financial ( OCN), down 6.2%, and AvalonBay Communities ( AVB), down 0.5%. Top gainers within the industry include St Joe ( JOE), up 4.8%, Brookfield Residential Properties ( BRP), up 3.9%, CoStar Group ( CSGP), up 2.7% and Icahn ( IEP), up 2.1%.

TheStreet would like to highlight 3 stocks pushing the industry lower today:

3. Nationstar Mortgage Holdings ( NSM) is one of the companies pushing the Real Estate industry lower today. As of noon trading, Nationstar Mortgage Holdings is down $1.23 (-3.8%) to $31.50 on average volume. Thus far, 572,002 shares of Nationstar Mortgage Holdings exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $29.78-$32.15 after having opened the day at $32.15 as compared to the previous trading day's close of $32.73.

Nationstar Mortgage Holdings Inc. provides residential mortgage loan services in the United States. The company operates in two segments, Servicing and Originations. Nationstar Mortgage Holdings has a market cap of $2.8 billion and is part of the financial sector. The company has a P/E ratio of 14.1, below the S&P 500 P/E ratio of 17.7. Shares are down 11.4% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Nationstar Mortgage Holdings a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Nationstar Mortgage Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins and generally disappointing historical performance in the stock itself. Get the full Nationstar Mortgage Holdings Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

2. As of noon trading, Health Care REIT ( HCN) is down $0.42 (-0.7%) to $62.67 on light volume. Thus far, 475,793 shares of Health Care REIT exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $62.32-$63.09 after having opened the day at $63.02 as compared to the previous trading day's close of $63.09.

Health Care REIT, Inc. is an independent equity real estate investment trust. The firm engages in acquiring, planning, developing, managing, repositioning and monetizing of real estate assets. It primarily invests in the real estate markets of the United States. Health Care REIT has a market cap of $18.3 billion and is part of the financial sector. The company has a P/E ratio of 583.9, above the S&P 500 P/E ratio of 17.7. Shares are up 17.8% year-to-date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Health Care REIT a buy, 2 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Health Care REIT as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. Get the full Health Care REIT Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

1. As of noon trading, Realty Income ( O) is down $0.70 (-1.6%) to $42.75 on light volume. Thus far, 827,906 shares of Realty Income exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $42.54-$43.62 after having opened the day at $43.61 as compared to the previous trading day's close of $43.45.

Realty Income Corporation is a publicly traded real estate investment trust. It invests in the real estate markets of the United States. The firm makes investments in commercial real estate. Realty Income Corporation was founded in 1969 and is based in Escondido, California. Realty Income has a market cap of $9.6 billion and is part of the financial sector. The company has a P/E ratio of 59.5, above the S&P 500 P/E ratio of 17.7. Shares are up 16.4% year-to-date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Realty Income a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Realty Income as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Realty Income Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you are interested in one of these 3 stocks, 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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