3 Stocks Pushing The Real Estate Industry Lower

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The Real Estate industry as a whole closed the day down 0.3% versus the S&P 500, which was down 0.2%. Laggards within the Real Estate industry included Roberts Realty Investors ( RPI), down 7.5%, China HGS Real Estate ( HGSH), down 2.4%, Amrep ( AXR), down 3.1%, JW Mays ( MAYS), down 4.7% and Gladstone Land ( LAND), down 1.9%.

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

Gladstone Land ( LAND) is one of the companies that pushed the Real Estate industry lower today. Gladstone Land was down $0.23 (1.9%) to $11.77 on average volume. Throughout the day, 27,238 shares of Gladstone Land exchanged hands as compared to its average daily volume of 20,500 shares. The stock ranged in price between $11.68-$12.12 after having opened the day at $12.12 as compared to the previous trading day's close of $12.00.

Gladstone Land Corporation, an agricultural real estate company, owns and leases farmland to corporate and independent farmers in the United States. It also leases a parcel on its farm near Oxnard, California to an oil company. Gladstone Land has a market cap of $82.2 million and is part of the financial sector. Shares are down 24.8% year-to-date as of the close of trading on Friday. Currently there are 3 analysts who rate Gladstone Land a buy, no analysts rate it a sell, and 1 rates it a hold.

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

Highlights from TheStreet Ratings analysis on LAND 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 Real Estate Management & Development industry. The net income has significantly decreased by 56.3% when compared to the same quarter one year ago, falling from $0.05 million to $0.02 million.
  • The gross profit margin for GLADSTONE LAND CORP is currently lower than what is desirable, coming in at 31.45%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 1.39% trails 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 25.05%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • GLADSTONE LAND CORP 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 reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GLADSTONE LAND CORP swung to a loss, reporting -$0.19 versus $0.05 in the prior year. This year, the market expects an improvement in earnings ($0.07 versus -$0.19).
  • Compared to other companies in the Real Estate Management & Development industry and the overall market, GLADSTONE LAND CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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

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At the close, Amrep ( AXR) was down $0.20 (3.1%) to $6.31 on light volume. Throughout the day, 11,315 shares of Amrep exchanged hands as compared to its average daily volume of 16,400 shares. The stock ranged in price between $6.23-$6.49 after having opened the day at $6.43 as compared to the previous trading day's close of $6.51.

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 $47.6 million and is part of the financial sector. Shares are down 2.8% year-to-date as of the close of trading on Friday.

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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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China HGS Real Estate ( HGSH) was another company that pushed the Real Estate industry lower today. China HGS Real Estate was down $0.06 (2.4%) to $2.48 on average volume. Throughout the day, 10,301 shares of China HGS Real Estate exchanged hands as compared to its average daily volume of 13,100 shares. The stock ranged in price between $2.42-$2.59 after having opened the day at $2.54 as compared to the previous trading day's close of $2.54.

China HGS Real Estate, Inc., through its subsidiary, Shaanxi Guangsha Investment and Development Group Co., Ltd, develops real estate properties in the People's Republic of China. It is involved in the construction and sale of residential apartments, parking lots, and commercial properties. China HGS Real Estate has a market cap of $116.2 million and is part of the financial sector. Shares are down 57.1% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates China HGS Real Estate as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself.

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Highlights from TheStreet Ratings analysis on HGSH go as follows:

  • HGSH's very impressive revenue growth greatly exceeded the industry average of 33.9%. Since the same quarter one year prior, revenues leaped by 157.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CHINA HGS REAL ESTATE 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, CHINA HGS REAL ESTATE INC increased its bottom line by earning $0.46 versus $0.11 in the prior year.
  • HGSH's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.13 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The gross profit margin for CHINA HGS REAL ESTATE INC is currently lower than what is desirable, coming in at 33.12%. It has decreased from the same quarter the previous year. Despite the weak results of the gross profit margin, the net profit margin of 28.67% has significantly outperformed against the industry average.
  • Net operating cash flow has significantly decreased to -$3.65 million or 2084.23% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: China HGS Real Estate 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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