3 Real Estate Stocks Driving The Industry Higher

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All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 66 points (0.4%) at 16,609 as of Friday, May 23, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,917 issues advancing vs. 1,047 declining with 178 unchanged.

The Real Estate industry as a whole closed the day up 1.0% versus the S&P 500, which was up 0.4%. Top gainers within the Real Estate industry included IFM Investments ( CTC), up 5.7%, BRT Realty ( BRT), up 1.6%, Amrep ( AXR), up 2.1%, Wheeler Real Estate Investment ( WHLR), up 2.2% and Gladstone Land ( LAND), up 4.5%.

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

Amrep ( AXR) is one of the companies that pushed the Real Estate industry higher today. Amrep was up $0.09 (2.1%) to $4.39 on average volume. Throughout the day, 18,395 shares of Amrep exchanged hands as compared to its average daily volume of 13,900 shares. The stock ranged in a price between $4.28-$4.52 after having opened the day at $4.31 as compared to the previous trading day's close of $4.30.

AMREP Corporation, through its subsidiaries, engages in media services and real estate businesses. It operates in four segments: Subscription Fulfillment Services; Newsstand Distribution Services; Product Packaging and Fulfillment Services, and Other; and Real Estate Operations. Amrep has a market cap of $32.8 million and is part of the financial sector. Shares are down 38.6% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Amrep a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Amrep as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on AXR 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 Commercial Services & Supplies industry. The net income has significantly decreased by 466.7% when compared to the same quarter one year ago, falling from $0.00 million to -$0.01 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Services & Supplies industry and the overall market, AMREP CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for AMREP CORP is rather low; currently it is at 16.32%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.04% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$1.61 million or 142.56% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • AMREP CORP has shown no change in earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, AMREP CORP reported poor results of -$0.47 versus -$0.19 in the prior year.

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

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