3 Stocks Underperforming Today In The Real Estate Industry

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 81 points (0.5%) at 17,082 as of Monday, Aug. 25, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,780 issues advancing vs. 1,159 declining with 188 unchanged.

The Real Estate industry currently sits down 0.3% versus the S&P 500, which is up 0.4%. On the negative front, top decliners within the industry include E-House China Holdings ( EJ), down 3.3%, Diamondrock Hospitality ( DRH), down 1.6%, Extra Space Storage ( EXR), down 1.1%, CoStar Group ( CSGP), down 0.7% and Duke Realty ( DRE), down 0.7%. Top gainers within the industry include China HGS Real Estate ( HGSH), up 13.4%, Texas Pacific Land ( TPL), up 3.0% and Icahn ( IEP), up 1.1%.

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

3. Equity Residential ( EQR) is one of the companies pushing the Real Estate industry lower today. As of noon trading, Equity Residential is down $0.35 (-0.5%) to $66.08 on light volume. Thus far, 510,347 shares of Equity Residential exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $65.96-$66.73 after having opened the day at $66.73 as compared to the previous trading day's close of $66.43.

Equity Residential, a real estate investment trust (REIT), engages in the acquisition, development, and management of multifamily properties in the United States. Equity Residential has a market cap of $24.3 billion and is part of the financial sector. Shares are up 28.1% year-to-date as of the close of trading on Friday. Currently there are 6 analysts that rate Equity Residential a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Equity Residential as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, good cash flow from operations, impressive record of earnings per share growth and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Equity Residential 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, American Realty Capital Properties ( ARCP) is down $0.09 (-0.7%) to $13.10 on light volume. Thus far, 2.3 million shares of American Realty Capital Properties exchanged hands as compared to its average daily volume of 13.0 million shares. The stock has ranged in price between $13.08-$13.24 after having opened the day at $13.21 as compared to the previous trading day's close of $13.19.

American Realty Capital Properties, Inc. owns and acquires single tenant, freestanding commercial real estate that is net leased on a medium-term basis, primarily to investment grade credit rated and other creditworthy tenants. The company principally invests in retail and office properties. American Realty Capital Properties has a market cap of $12.1 billion and is part of the financial sector. Shares are up 2.6% year-to-date as of the close of trading on Friday. Currently there are 3 analysts that rate American Realty Capital Properties a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates American Realty Capital Properties as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Get the full American Realty Capital Properties 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, Zillow ( Z) is down $3.25 (-2.2%) to $143.60 on light volume. Thus far, 644,407 shares of Zillow exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $143.51-$148.54 after having opened the day at $148.23 as compared to the previous trading day's close of $146.85.

Zillow, Inc. operates real estate and home-related information marketplaces on mobile and the Web in the United States. The company owns and operates Zillow.com. Zillow has a market cap of $4.9 billion and is part of the financial sector. Shares are up 79.7% year-to-date as of the close of trading on Friday. Currently there are 4 analysts that rate Zillow a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Zillow as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that net income has been generally deteriorating over time. Get the full Zillow 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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