PLD, OCN And AMT, Pushing Real Estate Industry Downward

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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 83 points (-0.5%) at 16,448 as of Tuesday, May 6, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,223 issues advancing vs. 1,760 declining with 164 unchanged.

The Real Estate industry currently sits down 0.4% versus the S&P 500, which is down 0.4%. On the negative front, top decliners within the industry include Hilltop Holdings ( HTH), down 6.8%, Redwood ( RWT), down 3.8%, Brookfield Residential Properties ( BRP), down 2.3%, Liberty Property ( LPT), down 1.9% and Nationstar Mortgage Holdings ( NSM), down 1.8%.

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

3. Prologis ( PLD) is one of the companies pushing the Real Estate industry lower today. As of noon trading, Prologis is down $0.32 (-0.8%) to $40.88 on average volume. Thus far, 1.0 million shares of Prologis exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $40.54-$41.00 after having opened the day at $40.69 as compared to the previous trading day's close of $41.19.

Prologis Inc. is an independent equity real estate investment trust. It invests in the real estate markets across the globe. The firm engages in the ownership, development, management, and leasing of industrial distribution and retail properties. Prologis has a market cap of $20.4 billion and is part of the financial sector. Shares are up 11.4% year-to-date as of the close of trading on Monday. Currently there are 11 analysts that rate Prologis a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Prologis as a buy. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Prologis 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, Ocwen Financial ( OCN) is down $1.66 (-4.9%) to $32.07 on heavy volume. Thus far, 3.4 million shares of Ocwen Financial exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $32.05-$33.67 after having opened the day at $33.67 as compared to the previous trading day's close of $33.73.

Ocwen Financial Corporation, through its subsidiaries, is engaged in the servicing and origination of mortgage loans in the United States and internationally. Ocwen Financial has a market cap of $4.7 billion and is part of the financial sector. The company has a P/E ratio of 15.4, below the S&P 500 P/E ratio of 17.7. Shares are down 39.2% year-to-date as of the close of trading on Monday. Currently there are 6 analysts that rate Ocwen Financial a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Ocwen Financial as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Get the full Ocwen Financial 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, American Tower ( AMT) is down $0.98 (-1.1%) to $87.42 on average volume. Thus far, 1.2 million shares of American Tower exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $87.14-$87.70 after having opened the day at $87.54 as compared to the previous trading day's close of $88.40.

American Tower Corporation is a real estate investment trust. It invests in the real estate markets across the globe. The firm through its subsidiaries owns, operates and develops wireless and broadcast communications real estate. American Tower has a market cap of $34.4 billion and is part of the financial sector. The company has a P/E ratio of 59.6, above the S&P 500 P/E ratio of 17.7. Shares are up 10.8% year-to-date as of the close of trading on Monday. Currently there are 14 analysts that rate American Tower a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates American Tower as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full American Tower 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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