3 Stocks Pulling The 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.

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 91 points (0.6%) at 16,492 as of Wednesday, May 7, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,744 issues advancing vs. 1,239 declining with 163 unchanged.

The Real Estate industry currently sits up 0.2% versus the S&P 500, which is up 0.3%. On the negative front, top decliners within the industry include E-House China Holdings ( EJ), down 7.0%, Icahn ( IEP), down 2.7% and Douglas Emmett ( DEI), down 1.6%. Top gainers within the industry include Digital Realty ( DLR), up 3.4%, American Capital Agency ( AGNC), up 1.7%, Camden Property ( CPT), up 1.4%, AvalonBay Communities ( AVB), up 1.4% and General Growth Properties ( GGP), up 1.4%.

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

3. CoStar Group ( CSGP) is one of the companies pushing the Real Estate industry lower today. As of noon trading, CoStar Group is down $5.06 (-3.2%) to $153.06 on light volume. Thus far, 97,863 shares of CoStar Group exchanged hands as compared to its average daily volume of 265,300 shares. The stock has ranged in price between $151.07-$159.52 after having opened the day at $158.86 as compared to the previous trading day's close of $158.12.

CoStar Group, Inc. provides information, analytics, and marketing services to the commercial real estate industry in the United States, the United Kingdom, and France. CoStar Group has a market cap of $4.7 billion and is part of the financial sector. Shares are down 14.3% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts that rate CoStar Group a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates CoStar Group as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full CoStar Group 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, American Realty Capital Properties ( ARCP) is down $0.08 (-0.6%) to $12.78 on average volume. Thus far, 4.1 million shares of American Realty Capital Properties exchanged hands as compared to its average daily volume of 10.1 million shares. The stock has ranged in price between $12.75-$12.98 after having opened the day at $12.91 as compared to the previous trading day's close of $12.86.

American Realty Capital Properties, Inc. owns and acquires single tenant, freestanding commercial real estate that is net leased on a medium-term basis, primarily to investment grade credit rated and other creditworthy tenants. The company principally invests in retail and office properties. American Realty Capital Properties has a market cap of $10.2 billion and is part of the financial sector. Shares are up 0.1% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts that rate American Realty Capital Properties a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates American Realty Capital Properties as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself. Get the full American Realty Capital Properties 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, Zillow ( Z) is down $5.87 (-5.7%) to $97.05 on heavy volume. Thus far, 2.8 million shares of Zillow exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $96.24-$103.50 after having opened the day at $103.28 as compared to the previous trading day's close of $102.92.

Zillow, Inc. operates real estate and home-related information marketplaces on mobile and the Web in the United States. The company owns and operates Zillow.com. Zillow has a market cap of $3.6 billion and is part of the financial sector. Shares are up 25.9% year-to-date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Zillow a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Zillow as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity. Get the full Zillow 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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