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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 87 points (0.5%) at 16,606 as of Thursday, May 8, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,938 issues advancing vs. 1,065 declining with 159 unchanged.

The Real Estate industry currently sits up 0.3% versus the S&P 500, which is up 0.5%. On the negative front, top decliners within the industry include Annaly Capital Management ( NLY), down 3.4%, Public Storage ( PSA), down 1.7% and American Realty Capital Properties ( ARCP), down 1.6%. Top gainers within the industry include Walter Investment Management ( WAC), up 21.0%, Zillow ( Z), up 7.9%, Altisource Portfolio Solutions ( ASPS), up 4.9%, Kennedy-Wilson Holdings ( KW), up 4.8% and CoStar Group ( CSGP), up 3.9%.

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

3. PennyMac Mortgage Investment ( PMT) is one of the companies pushing the Real Estate industry lower today. As of noon trading, PennyMac Mortgage Investment is down $1.48 (-6.3%) to $21.85 on heavy volume. Thus far, 1.9 million shares of PennyMac Mortgage Investment exchanged hands as compared to its average daily volume of 621,400 shares. The stock has ranged in price between $18.91-$22.43 after having opened the day at $22.41 as compared to the previous trading day's close of $23.33.

PennyMac Mortgage Investment Trust, a specialty finance company, through its subsidiaries, invests primarily in residential mortgage loans and mortgage-related assets. The company operates through two segments, Correspondent Lending and Investment Activities. PennyMac Mortgage Investment has a market cap of $1.7 billion and is part of the financial sector. Shares are up 1.6% year-to-date as of the close of trading on Wednesday. Currently there are 6 analysts that rate PennyMac Mortgage Investment a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates PennyMac Mortgage Investment as a hold. The company's strengths can be seen in multiple areas, such as its attractive 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 and a generally disappointing performance in the stock itself. Get the full PennyMac Mortgage Investment 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, Two Harbors Investment ( TWO) is down $0.24 (-2.3%) to $10.25 on heavy volume. Thus far, 3.6 million shares of Two Harbors Investment exchanged hands as compared to its average daily volume of 3.9 million shares. The stock has ranged in price between $10.22-$10.42 after having opened the day at $10.36 as compared to the previous trading day's close of $10.49.

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, mortgage servicing rights, and other financial assets. Two Harbors Investment has a market cap of $3.8 billion and is part of the financial sector. Shares are up 13.0% year-to-date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Two Harbors Investment a buy, no analysts rate it a sell, and none rate 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 revenue growth, notable return on equity and attractive valuation levels. 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 Two Harbors Investment 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, Extra Space Storage ( EXR) is down $0.54 (-1.0%) to $51.44 on light volume. Thus far, 300,632 shares of Extra Space Storage exchanged hands as compared to its average daily volume of 807,400 shares. The stock has ranged in price between $51.42-$52.02 after having opened the day at $51.52 as compared to the previous trading day's close of $51.97.

Extra Space Storage, Inc. operates as a real estate investment trust (REIT) in the United States. It engages in property management and development activities that include acquiring, managing, developing, and selling, as well as the rental of self-storage facilities. Extra Space Storage has a market cap of $6.0 billion and is part of the financial sector. Shares are up 23.4% year-to-date as of the close of trading on Wednesday. Currently there are 7 analysts that rate Extra Space Storage a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Extra Space Storage as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, compelling growth in net income, expanding profit margins and growth in earnings per share. 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 Extra Space Storage 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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