3 Stocks Boosting The Real Estate 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 12 points (0.1%) at 16,545 as of Thursday, May 22, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,121 issues advancing vs. 844 declining with 178 unchanged.

The Real Estate industry as a whole closed the day up 0.2% versus the S&P 500, which was up 0.3%. Top gainers within the Real Estate industry included Wheeler Real Estate Investment ( WHLR), up 3.4%, Trade Street Residential ( TSRE), up 3.0%, Farmland Partners ( FPI), up 1.9%, One Liberty Properties ( OLP), up 1.6% and BBX Capital ( BBX), up 3.2%.

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

One Liberty Properties ( OLP) is one of the companies that pushed the Real Estate industry higher today. One Liberty Properties was up $0.33 (1.6%) to $21.57 on light volume. Throughout the day, 11,899 shares of One Liberty Properties exchanged hands as compared to its average daily volume of 31,600 shares. The stock ranged in a price between $21.27-$21.65 after having opened the day at $21.35 as compared to the previous trading day's close of $21.24.

One Liberty Properties, Inc., a real estate investment trust (REIT), engages in the acquisition, ownership, and management of commercial real estate properties in the United States. One Liberty Properties has a market cap of $339.9 million and is part of the financial sector. Shares are up 5.5% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates One Liberty Properties a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates One Liberty Properties as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, expanding profit margins 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 OLP go as follows:

  • OLP's revenue growth has slightly outpaced the industry average of 10.1%. Since the same quarter one year prior, revenues rose by 18.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $7.25 million or 10.75% when compared to the same quarter last year. Despite an increase in cash flow, ONE LIBERTY PROPERTIES INC's average is still marginally south of the industry average growth rate of 18.83%.
  • The gross profit margin for ONE LIBERTY PROPERTIES INC is rather high; currently it is at 51.42%. Regardless of OLP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OLP's net profit margin of 22.50% compares favorably to the industry average.
  • ONE LIBERTY PROPERTIES INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ONE LIBERTY PROPERTIES INC increased its bottom line by earning $1.09 versus $0.80 in the prior year. For the next year, the market is expecting a contraction of 13.8% in earnings ($0.94 versus $1.09).

You can view the full analysis from the report here: One Liberty Properties 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, Farmland Partners ( FPI) was up $0.24 (1.9%) to $12.72 on light volume. Throughout the day, 17,434 shares of Farmland Partners exchanged hands as compared to its average daily volume of 40,600 shares. The stock ranged in a price between $12.55-$12.88 after having opened the day at $12.69 as compared to the previous trading day's close of $12.48.

Farmland Partners has a market cap of $50.9 million and is part of the financial sector. Shares are unchanged year-to-date as of the close of trading on Wednesday.

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

Highlights from TheStreet Ratings analysis on FPI go as follows:

You can view the full analysis from the report here: Farmland Partners 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.

Trade Street Residential ( TSRE) was another company that pushed the Real Estate industry higher today. Trade Street Residential was up $0.22 (3.0%) to $7.63 on light volume. Throughout the day, 39,170 shares of Trade Street Residential exchanged hands as compared to its average daily volume of 55,600 shares. The stock ranged in a price between $7.33-$7.79 after having opened the day at $7.49 as compared to the previous trading day's close of $7.41.

Trade Street Residential, Inc., a real estate investment trust, engages in acquiring, owning, operating, and managing garden-style and mid-rise apartment communities in mid-sized cities and suburban submarkets of larger cities primarily in the southeastern United States. Trade Street Residential has a market cap of $270.3 million and is part of the financial sector. Shares are up 17.1% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate Trade Street Residential a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Trade Street Residential as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on TSRE go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 598.1% when compared to the same quarter one year ago, falling from -$2.15 million to -$14.98 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 25.08%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 202.12% compared to the year-earlier 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.
  • TRADE STREET RESIDENTIAL INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TRADE STREET RESIDENTIAL INC reported poor results of -$1.06 versus $0.00 in the prior year. This year, the market expects an improvement in earnings (-$0.33 versus -$1.06).
  • 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, TRADE STREET RESIDENTIAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • TSRE's very impressive revenue growth greatly exceeded the industry average of 10.1%. Since the same quarter one year prior, revenues leaped by 114.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.

You can view the full analysis from the report here: Trade Street Residential 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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