3 Stocks Pulling The Real Estate Industry Downward

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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 66 points (-0.4%) at 16,378 as of Thursday, Aug. 7, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,344 issues advancing vs. 1,660 declining with 123 unchanged.

The Real Estate industry currently is unchanged today versus the S&P 500, which is down 0.5%. On the negative front, top decliners within the industry include Altisource Portfolio Solutions ( ASPS), down 3.1%, Icahn ( IEP), down 1.4%, Starwood Property ( STWD), down 0.9% and Realogy Holdings ( RLGY), down 0.8%. Top gainers within the industry include Kennedy-Wilson Holdings ( KW), up 6.5%, PennyMac Mortgage Investment ( PMT), up 3.9%, Corrections Corp of America ( CXW), up 3.7%, Regency Centers ( REG), up 1.6% and Jones Lang LaSalle ( JLL), up 1.6%.

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

3. Ocwen Financial ( OCN) is one of the companies pushing the Real Estate industry lower today. As of noon trading, Ocwen Financial is down $0.68 (-2.6%) to $25.43 on average volume. Thus far, 1.2 million shares of Ocwen Financial exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $25.42-$26.14 after having opened the day at $26.13 as compared to the previous trading day's close of $26.11.

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 $3.6 billion and is part of the financial sector. Shares are down 52.9% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Ocwen Financial a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Ocwen Financial as a hold. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including unimpressive growth in net income 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.

2. As of noon trading, Essex Property ( ESS) is down $1.23 (-0.7%) to $187.11 on average volume. Thus far, 150,342 shares of Essex Property exchanged hands as compared to its average daily volume of 359,400 shares. The stock has ranged in price between $186.96-$189.97 after having opened the day at $189.36 as compared to the previous trading day's close of $188.34.

Essex Property Trust, Inc. operates as a self-administered and self-managed real estate investment trust in the United States. It engages in the ownership, operation, management, acquisition, development, and redevelopment of apartment communities, as well as commercial properties. Essex Property has a market cap of $11.8 billion and is part of the financial sector. Shares are up 31.2% year-to-date as of the close of trading on Wednesday. Currently there are 7 analysts that rate Essex Property a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Essex Property as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Essex 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.

1. As of noon trading, AvalonBay Communities ( AVB) is down $0.79 (-0.5%) to $148.59 on light volume. Thus far, 242,340 shares of AvalonBay Communities exchanged hands as compared to its average daily volume of 711,700 shares. The stock has ranged in price between $148.46-$150.06 after having opened the day at $149.55 as compared to the previous trading day's close of $149.38.

AvalonBay Communities, Inc. engages in the development, redevelopment, acquisition, ownership, and operation of multifamily communities in the United States. AvalonBay Communities has a market cap of $19.3 billion and is part of the financial sector. Shares are up 26.4% year-to-date as of the close of trading on Wednesday. Currently there are 9 analysts that rate AvalonBay Communities a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates AvalonBay Communities as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, expanding profit margins, increase in stock price during the past year and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full AvalonBay Communities 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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