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 0.8% versus the S&P 500, which was up 0.4%. Laggards within the Real Estate industry included Alto Palermo ( APSA), down 5.3%, Vestin Realty Mortgage II ( VRTB), down 2.6%, China Housing & Land Development ( CHLN), down 4.3%, Income Opportunity Realty Investors ( IOT), down 3.8% and BRT Realty ( BRT), down 4.0%.

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

Camden Property ( CPT) is one of the companies that pushed the Real Estate industry lower today. Camden Property was down $1.99 (2.6%) to $73.07 on heavy volume. Throughout the day, 649,978 shares of Camden Property exchanged hands as compared to its average daily volume of 400,300 shares. The stock ranged in price between $72.89-$74.86 after having opened the day at $74.86 as compared to the previous trading day's close of $75.06.

Camden Property Trust is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It is engaged in the ownership, development, acquisition, management, and disposition of multifamily residential apartment communities. Camden Property has a market cap of $6.5 billion and is part of the financial sector. Shares are up 32.0% year-to-date as of the close of trading on Tuesday. Currently there are 6 analysts who rate Camden Property a buy, 1 analyst rates it a sell, and 6 rate it a hold.

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TheStreet Ratings rates Camden Property as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on CPT go as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Net operating cash flow has slightly increased to $99.98 million or 3.97% when compared to the same quarter last year. Despite an increase in cash flow, CAMDEN PROPERTY TRUST's cash flow growth rate is still lower than the industry average growth rate of 17.00%.
  • CAMDEN PROPERTY TRUST's earnings per share declined by 24.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CAMDEN PROPERTY TRUST reported lower earnings of $1.70 versus $1.79 in the prior year. This year, the market expects an improvement in earnings ($1.75 versus $1.70).
  • CPT, with its decline in revenue, underperformed when compared the industry average of 10.6%. Since the same quarter one year prior, revenues slightly dropped by 2.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, CAMDEN PROPERTY TRUST's return on equity is below that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Camden Property Ratings Report

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At the close, BRT Realty ( BRT) was down $0.30 (4.0%) to $7.20 on heavy volume. Throughout the day, 29,678 shares of BRT Realty exchanged hands as compared to its average daily volume of 13,500 shares. The stock ranged in price between $7.19-$7.42 after having opened the day at $7.42 as compared to the previous trading day's close of $7.50.

BRT Realty Trust originates and holds for investment senior mortgage loans secured by commercial and multi-family real estate property in the United States. The company offers short-term or bridge loans at a floating rate of interest based on a spread over the prime rate. BRT Realty has a market cap of $103.7 million and is part of the financial sector. Shares are up 6.1% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates BRT Realty as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on BRT 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 Investment Trusts (REITs) industry. The net income has significantly decreased by 163.5% when compared to the same quarter one year ago, falling from $0.52 million to -$0.33 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 Real Estate Investment Trusts (REITs) industry and the overall market, BRT REALTY TRUST's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for BRT REALTY TRUST is currently extremely low, coming in at 8.07%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -1.82% is significantly below that of the industry average.
  • In its most recent trading session, BRT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • BRT REALTY TRUST 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. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, BRT REALTY TRUST increased its bottom line by earning $0.34 versus $0.26 in the prior year.

You can view the full analysis from the report here: BRT Realty Ratings Report

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China Housing & Land Development ( CHLN) was another company that pushed the Real Estate industry lower today. China Housing & Land Development was down $0.07 (4.3%) to $1.57 on heavy volume. Throughout the day, 85,746 shares of China Housing & Land Development exchanged hands as compared to its average daily volume of 44,300 shares. The stock ranged in price between $1.57-$1.63 after having opened the day at $1.63 as compared to the previous trading day's close of $1.64.

China Housing & Land Development, Inc., a real estate development company, is engaged in the acquisition, development, management, and sale of commercial and residential real estate properties primarily in Xi'an, the People's Republic of China. China Housing & Land Development has a market cap of $55.8 million and is part of the financial sector. Shares are down 30.2% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates China Housing & Land Development 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, generally high debt management risk, disappointing return on equity and weak operating cash flow.

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Highlights from TheStreet Ratings analysis on CHLN go as follows:

  • CHINA HOUSING & LAND DEV 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, CHINA HOUSING & LAND DEV INC reported lower earnings of $0.34 versus $0.56 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 Real Estate Management & Development industry. The net income has significantly decreased by 126.9% when compared to the same quarter one year ago, falling from $2.87 million to -$0.77 million.
  • Although CHLN's debt-to-equity ratio of 2.45 is very high, it is currently less than that of the industry average.
  • 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. When compared to other companies in the Real Estate Management & Development industry and the overall market, CHINA HOUSING & LAND DEV INC's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$30.61 million or 5758.78% 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 Housing & Land Development 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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