3 Real Estate Stocks Nudging The Industry Higher

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 traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 40 points (0.2%) at 16,487 as of Friday, May 16, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,578 issues advancing vs. 1,383 declining with 164 unchanged.

The Real Estate industry as a whole closed the day up 0.5% versus the S&P 500, which was up 0.3%. Top gainers within the Real Estate industry included HMG/Courtland Properties ( HMG), up 2.5%, Supertel Hospitality ( SPPR), up 8.3%, Institutional Financial Markets ( IFMI), up 3.9%, China Housing & Land Development ( CHLN), up 2.8% and Terreno Realty ( TRNO), up 2.3%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Terreno Realty ( TRNO) is one of the companies that pushed the Real Estate industry higher today. Terreno Realty was up $0.42 (2.3%) to $18.68 on average volume. Throughout the day, 45,301 shares of Terreno Realty exchanged hands as compared to its average daily volume of 58,300 shares. The stock ranged in a price between $18.25-$18.70 after having opened the day at $18.25 as compared to the previous trading day's close of $18.26.

Terreno Realty Corporation engages in acquiring, owning, and operating real estate properties in Los Angeles area, northern New Jersey/New York City, San Francisco Bay area, Seattle area, Miami area, and Washington D.C./Baltimore area. Terreno Realty has a market cap of $470.6 million and is part of the financial sector. Shares are up 3.2% year-to-date as of the close of trading on Thursday. Currently there are 3 analysts who rate Terreno Realty a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Terreno Realty as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, good cash flow from operations, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on TRNO go as follows:

  • TRNO's very impressive revenue growth greatly exceeded the industry average of 9.8%. Since the same quarter one year prior, revenues leaped by 61.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • TERRENO REALTY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TERRENO REALTY CORP continued to lose money by earning -$0.06 versus -$0.28 in the prior year. This year, the market expects an improvement in earnings ($0.21 versus -$0.06).
  • Net operating cash flow has increased to $3.78 million or 43.28% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.68%.
  • The net income growth from the same quarter one year ago has exceeded that of the Real Estate Investment Trusts (REITs) industry average, but is less than that of the S&P 500. The net income increased by 4.2% when compared to the same quarter one year prior, going from $3.55 million to $3.70 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, TERRENO REALTY CORP's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Terreno Realty Ratings Report

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

At the close, China Housing & Land Development ( CHLN) was up $0.06 (2.8%) to $2.18 on light volume. Throughout the day, 33,560 shares of China Housing & Land Development exchanged hands as compared to its average daily volume of 48,700 shares. The stock ranged in a price between $2.12-$2.18 after having opened the day at $2.12 as compared to the previous trading day's close of $2.12.

China Housing & Land Development, Inc., through its subsidiaries, engages in the acquisition, development, management, and sale of commercial and residential real estate properties primarily in Xi'an, the People's Republic of China. China Housing & Land Development has a market cap of $73.5 million and is part of the financial sector. Shares are down 8.6% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate China Housing & Land Development a buy, no analysts rate it a sell, and none rate it a hold.

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

TheStreet Ratings rates China Housing & Land Development as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.

Highlights from TheStreet Ratings analysis on CHLN go as follows:

  • 47.36% is the gross profit margin for CHINA HOUSING & LAND DEV INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.89% trails the industry average.
  • Despite the weak revenue results, CHLN has significantly outperformed against the industry average of 37.0%. Since the same quarter one year prior, revenues slightly dropped by 0.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The debt-to-equity ratio is very high at 2.19 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Real Estate Management & Development industry and the overall market, CHINA HOUSING & LAND DEV INC's return on equity is below that of both the industry average and the S&P 500.

You can view the full analysis from the report here: China Housing & Land Development Ratings Report

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

Supertel Hospitality ( SPPR) was another company that pushed the Real Estate industry higher today. Supertel Hospitality was up $0.10 (8.3%) to $1.31 on heavy volume. Throughout the day, 64,762 shares of Supertel Hospitality exchanged hands as compared to its average daily volume of 42,100 shares. The stock ranged in a price between $1.24-$1.42 after having opened the day at $1.32 as compared to the previous trading day's close of $1.21.

Supertel Hospitality, Inc. is an independent equity real estate investment trust. The firm invests in the real estate markets of the United States. It primarily invests in limited-service hotels. The firm was formerly known as Humphrey Hospitality Trust, Inc. Supertel Hospitality, Inc. Supertel Hospitality has a market cap of $3.9 million and is part of the financial sector. Shares are down 50.4% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Supertel Hospitality a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Supertel Hospitality as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on SPPR go as follows:

  • SPPR's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 81.90%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, SUPERTEL HOSPITALITY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • SPPR, with its decline in revenue, underperformed when compared the industry average of 9.8%. Since the same quarter one year prior, revenues slightly dropped by 6.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has increased to -$1.24 million or 49.15% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.68%.
  • SUPERTEL HOSPITALITY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, SUPERTEL HOSPITALITY INC continued to lose money by earning -$1.38 versus -$4.96 in the prior year.

You can view the full analysis from the report here: Supertel Hospitality Ratings Report

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

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.

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