3 Real Estate Stocks Dragging The Industry Down

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 are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 62 points (0.4%) at 17,123 as of Wednesday, July 16, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,670 issues advancing vs. 1,271 declining with 202 unchanged.

The Real Estate industry currently is unchanged today versus the S&P 500, which is up 0.4%. On the negative front, top decliners within the industry include Walter Investment Management ( WAC), down 3.0%, and Howard Hughes ( HHC), down 0.7%. Top gainers within the industry include Brookfield Asset Management ( BAM), up 1.6%, Rayonier ( RYN), up 1.2%, Liberty Property ( LPT), up 0.9% and Vornado Realty ( VNO), up 0.6%.

TheStreet would like to highlight 3 stocks pushing the industry lower today:

3. Starwood Property ( STWD) is one of the companies pushing the Real Estate industry lower today. As of noon trading, Starwood Property is down $0.14 (-0.6%) to $23.41 on light volume. Thus far, 333,319 shares of Starwood Property exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $23.37-$23.61 after having opened the day at $23.61 as compared to the previous trading day's close of $23.55.

Starwood Property Trust, Inc. originates, acquires, finances, and manages commercial mortgage loans, other commercial real estate debt investments, commercial mortgage-backed securities, and other commercial real estate-related debt investments in the United States and Europe. Starwood Property has a market cap of $5.2 billion and is part of the financial sector. Shares are down 15.0% year-to-date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Starwood Property a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Starwood Property as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Starwood Property Ratings Report now.

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

2. As of noon trading, CoStar Group ( CSGP) is down $1.02 (-0.7%) to $144.84 on light volume. Thus far, 35,734 shares of CoStar Group exchanged hands as compared to its average daily volume of 378,400 shares. The stock has ranged in price between $143.94-$146.84 after having opened the day at $146.84 as compared to the previous trading day's close of $145.86.

CoStar Group, Inc. provides information, analytics, and marketing services to the commercial real estate industry in the United States, the United Kingdom, and France. CoStar Group has a market cap of $4.7 billion and is part of the financial sector. Shares are down 21.0% year-to-date as of the close of trading on Tuesday. Currently there are 6 analysts that rate CoStar Group a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates CoStar Group as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full CoStar Group Ratings Report now.

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

1. As of noon trading, Ocwen Financial ( OCN) is down $0.91 (-2.5%) to $35.63 on light volume. Thus far, 701,585 shares of Ocwen Financial exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $35.17-$36.65 after having opened the day at $36.51 as compared to the previous trading day's close of $36.54.

Ocwen Financial Corporation, through its subsidiaries, is engaged in the servicing and origination of mortgage loans in the United States and internationally. Ocwen Financial has a market cap of $4.9 billion and is part of the financial sector. Shares are down 34.1% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Ocwen Financial a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Ocwen Financial as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself. Get the full Ocwen Financial Ratings Report now.

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

If you are interested in one of these 3 stocks, ETFs may be of interest. Investors who are bullish on the real estate industry could consider iShares Dow Jones US Real Estate ( IYR) while those bearish on the real estate industry could consider ProShares Short Real Estate Fund ( REK).

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