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 0.6% versus the S&P 500, which was down 0.6%. Laggards within the Real Estate industry included BRASILAGRO - CIA Bras de Prop Agricolas ( LND), down 2.7%, Impac Mortgage Holdings ( IMH), down 1.8%, JW Mays ( MAYS), down 2.2%, Supertel Hospitality ( SPPR), down 4.2% and Gladstone Land ( LAND), down 2.3%.

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 $0.28 (2.3%) to $12.00 on average volume. Throughout the day, 17,936 shares of Gladstone Land exchanged hands as compared to its average daily volume of 21,600 shares. The stock ranged in price between $12.00-$12.38 after having opened the day at $12.00 as compared to the previous trading day's close of $12.28.

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 $80.8 million and is part of the financial sector. Shares are down 23.6% year-to-date as of the close of trading on Thursday. Currently there are 3 analysts who rate Gladstone Land a buy, no analysts rate it a sell, and 1 rates 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 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

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 down $0.12 (4.2%) to $2.73 on light volume. Throughout the day, 20,664 shares of Supertel Hospitality exchanged hands as compared to its average daily volume of 42,100 shares. The stock ranged in price between $2.73-$2.90 after having opened the day at $2.90 as compared to the previous trading day's close of $2.85.

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 $8.1 million and is part of the financial sector. Shares are up 16.8% year-to-date as of the close of trading on Thursday.

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 67.09%, 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 29.73%.
  • 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.

Impac Mortgage Holdings ( IMH) was another company that pushed the Real Estate industry lower today. Impac Mortgage Holdings was down $0.10 (1.8%) to $5.49 on light volume. Throughout the day, 8,401 shares of Impac Mortgage Holdings exchanged hands as compared to its average daily volume of 16,600 shares. The stock ranged in price between $5.25-$5.58 after having opened the day at $5.25 as compared to the previous trading day's close of $5.59.

Impac Mortgage Holdings, Inc. operates as an independent residential mortgage lender. It operates through three segments: Mortgage Lending, Real Estate Services, and Long-Term Mortgage Portfolio. Impac Mortgage Holdings has a market cap of $54.2 million and is part of the financial sector. Shares are down 6.5% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Impac Mortgage Holdings a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Impac Mortgage Holdings 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.

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 IMH go as follows:

  • IMPAC MORTGAGE HOLDINGS INC 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, IMPAC MORTGAGE HOLDINGS INC swung to a loss, reporting -$0.59 versus $1.49 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 Thrifts & Mortgage Finance industry. The net income has significantly decreased by 301.9% when compared to the same quarter one year ago, falling from -$0.74 million to -$2.97 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 Thrifts & Mortgage Finance industry and the overall market, IMPAC MORTGAGE HOLDINGS INC'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 51.37%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1700.00% 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.
  • IMH, with its decline in revenue, underperformed when compared the industry average of 0.1%. Since the same quarter one year prior, revenues fell by 27.4%. 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: Impac Mortgage Holdings 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.

More from Markets

Stocks Trade Lower as Optimism Wanes Over China Trade Talks

Stocks Trade Lower as Optimism Wanes Over China Trade Talks

Comcast Considering All-Cash Bid for Fox as Disney Battle Heads to the Wire

Comcast Considering All-Cash Bid for Fox as Disney Battle Heads to the Wire

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Target's Stock Tanks After Q1 Earnings Miss and Slowing Sales

Target's Stock Tanks After Q1 Earnings Miss and Slowing Sales

Trump, China Trade, Target and Las Vegas Casinos - 5 Things You Must Know

Trump, China Trade, Target and Las Vegas Casinos - 5 Things You Must Know