3 Real Estate Stocks Moving The Industry Upward

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 68 points (0.4%) at 16,974 as of Wednesday, July 9, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,593 issues advancing vs. 1,369 declining with 158 unchanged.

The Real Estate industry as a whole closed the day up 0.2% versus the S&P 500, which was up 0.5%. Top gainers within the Real Estate industry included IFM Investments ( CTC), up 5.9%, Transcontinental Realty Investors ( TCI), up 3.2%, Supertel Hospitality ( SPPR), up 9.8%, Elbit Imaging ( EMITF), up 2.4% and Maui Land & Pineapple ( MLP), up 2.9%.

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

Maui Land & Pineapple ( MLP) is one of the companies that pushed the Real Estate industry higher today. Maui Land & Pineapple was up $0.21 (2.9%) to $7.47 on light volume. Throughout the day, 7,637 shares of Maui Land & Pineapple exchanged hands as compared to its average daily volume of 18,100 shares. The stock ranged in a price between $7.11-$7.51 after having opened the day at $7.18 as compared to the previous trading day's close of $7.26.

Maui Land & Pineapple Company, Inc., together with its subsidiaries, develops, sells, and manages residential, resort, commercial, and industrial real estate properties. The company operates through four segments: Real Estate, Leasing, Utilities, and Resort Amenities. Maui Land & Pineapple has a market cap of $139.2 million and is part of the financial sector. Shares are up 19.2% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Maui Land & Pineapple a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Maui Land & Pineapple as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from TheStreet Ratings analysis on MLP go as follows:

  • The gross profit margin for MAUI LAND & PINEAPPLE CO is currently lower than what is desirable, coming in at 30.78%. Regardless of MLP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, MLP's net profit margin of -36.81% significantly underperformed when compared to the industry average.
  • Despite the weak revenue results, MLP has significantly outperformed against the industry average of 41.1%. Since the same quarter one year prior, revenues slightly dropped by 6.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has increased to -$1.29 million or 26.83% when compared to the same quarter last year. Despite an increase in cash flow, MAUI LAND & PINEAPPLE CO's cash flow growth rate is still lower than the industry average growth rate of 52.42%.
  • MAUI LAND & PINEAPPLE CO has improved earnings per share by 44.4% 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 year. During the past fiscal year, MAUI LAND & PINEAPPLE CO continued to lose money by earning -$0.15 versus -$0.27 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Real Estate Management & Development industry average. The net income increased by 49.9% when compared to the same quarter one year prior, rising from -$1.82 million to -$0.91 million.

You can view the full analysis from the report here: Maui Land & Pineapple 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, Supertel Hospitality ( SPPR) was up $0.20 (9.8%) to $2.24 on average volume. Throughout the day, 35,844 shares of Supertel Hospitality exchanged hands as compared to its average daily volume of 35,300 shares. The stock ranged in a price between $2.00-$2.32 after having opened the day at $2.00 as compared to the previous trading day's close of $2.04.

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 $5.9 million and is part of the financial sector. Shares are down 16.4% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Supertel Hospitality 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 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 77.25%, 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 10.3%. Since the same quarter one year prior, revenues slightly dropped by 0.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has significantly increased by 53.28% to -$0.18 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 29.95%.
  • 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.

IFM Investments ( CTC) was another company that pushed the Real Estate industry higher today. IFM Investments was up $0.07 (5.9%) to $1.25 on light volume. Throughout the day, 16,711 shares of IFM Investments exchanged hands as compared to its average daily volume of 29,500 shares. The stock ranged in a price between $1.22-$1.25 after having opened the day at $1.22 as compared to the previous trading day's close of $1.18.

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 $18.4 million and is part of the financial sector. Shares are down 42.4% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate IFM Investments a buy, no analysts rate it a sell, and none rate it a hold.

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 and generally disappointing historical performance in the stock itself.

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 981.5% when compared to the same quarter one year ago, falling from $0.87 million to -$7.63 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 46.79%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 950.00% 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.
  • CTC, with its decline in revenue, underperformed when compared the industry average of 33.3%. Since the same quarter one year prior, revenues fell by 48.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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.

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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