3 Stocks Pushing The Real Estate Industry Lower

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The Real Estate industry as a whole closed the day down 0.2% versus the S&P 500, which was down 0.1%. Laggards within the Real Estate industry included InnSuites Hospitality ( IHT), down 5.3%, IFM Investments ( CTC), down 6.1%, HMG/Courtland Properties ( HMG), down 6.8%, Elbit Imaging ( EMITF), down 2.7% and Armada Hoffler Properties ( AHH), down 2.5%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Strategic Hotels & Resorts ( BEE) is one of the companies that pushed the Real Estate industry lower today. Strategic Hotels & Resorts was down $0.45 (4.0%) to $10.65 on heavy volume. Throughout the day, 39,392,029 shares of Strategic Hotels & Resorts exchanged hands as compared to its average daily volume of 1,925,000 shares. The stock ranged in price between $10.45-$10.76 after having opened the day at $10.50 as compared to the previous trading day's close of $11.10.

Strategic Hotels & Resorts, Inc is an equity real estate investment trust. The firm invests in the real estate markets of the United States. It is owner and asset manager of the highest quality portfolio of upper-upscale and luxury hotels and resorts. Strategic Hotels & Resorts has a market cap of $2.3 billion and is part of the financial sector. Shares are up 15.8% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Strategic Hotels & Resorts a buy, no analysts rate it a sell, and 3 rate it a hold.

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TheStreet Ratings rates Strategic Hotels & Resorts as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on BEE go as follows:

  • Powered by its strong earnings growth of 308.33% and other important driving factors, this stock has surged by 28.27% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BEE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • STRATEGIC HOTELS & RESORTS 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, STRATEGIC HOTELS & RESORTS continued to lose money by earning -$0.10 versus -$0.41 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus -$0.10).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 1404.0% when compared to the same quarter one year prior, rising from -$17.41 million to $226.98 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.1%. Since the same quarter one year prior, revenues slightly increased by 9.1%. Growth in the company's revenue appears to have helped boost the earnings per share.

You can view the full analysis from the report here: Strategic Hotels & Resorts Ratings Report

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