3 Stocks Pushing The Real Estate Industry Lower

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.

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

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, Armada Hoffler Properties ( AHH) was down $0.25 (2.5%) to $9.65 on light volume. Throughout the day, 44,583 shares of Armada Hoffler Properties exchanged hands as compared to its average daily volume of 63,600 shares. The stock ranged in price between $9.64-$9.84 after having opened the day at $9.84 as compared to the previous trading day's close of $9.90.

Armada Hoffler Properties has a market cap of $187.7 million and is part of the financial sector. Shares are up 5.1% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts who rate Armada Hoffler Properties a buy, no analysts rate it a sell, and 2 rate it a hold.

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Highlights from TheStreet Ratings analysis on AHH go as follows:

You can view the full analysis from the report here: Armada Hoffler 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.

IFM Investments ( CTC) was another company that pushed the Real Estate industry lower today. IFM Investments was down $0.06 (6.1%) to $0.92 on average volume. Throughout the day, 16,079 shares of IFM Investments exchanged hands as compared to its average daily volume of 18,900 shares. The stock ranged in price between $0.89-$0.99 after having opened the day at $0.98 as compared to the previous trading day's close of $0.98.

IFM Investments Limited, through its subsidiaries, provides real estate services in the People's Republic of China. It operates through four segments: Company-Owned Brokerage Services, Franchise Services, Mortgage Management Services, and Primary and Commercial Services. IFM Investments has a market cap of $16.1 million and is part of the financial sector. Shares are down 47.3% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates IFM Investments as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

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 CTC go as follows:

  • IFM INVESTMENTS LTD 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 suffered a declining pattern earnings per share over the past two years. During the past fiscal year, IFM INVESTMENTS LTD reported poor results of -$0.92 versus -$0.57 in the prior year.
  • 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 Management & Development industry. The net income has significantly decreased by 1913.8% when compared to the same quarter one year ago, falling from -$0.31 million to -$6.26 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Real Estate Management & Development industry and the overall market, IFM INVESTMENTS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for IFM INVESTMENTS LTD is currently extremely low, coming in at 10.05%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -17.65% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 62.68%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 2000.00% 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.

You can view the full analysis from the report here: IFM Investments 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.

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