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 was unchanged today versus the S&P 500, which was up 1.3%. Laggards within the Real Estate industry included China Housing & Land Development ( CHLN), down 6.2%, Urstadt Biddle Properties ( UBP), down 2.8%, American Realty Investors ( ARL), down 3.8%, Elbit Imaging ( EMITF), down 2.8% and Doral Financial ( DRL), down 3.8%.

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

Doral Financial ( DRL) is one of the companies that pushed the Real Estate industry lower today. Doral Financial was down $0.11 (3.8%) to $2.77 on light volume. Throughout the day, 68,317 shares of Doral Financial exchanged hands as compared to its average daily volume of 178,500 shares. The stock ranged in price between $2.75-$3.27 after having opened the day at $3.25 as compared to the previous trading day's close of $2.88.

Doral Financial Corporation operates as the bank holding company for Doral Bank that provides retail banking services to general public and institutions. It primarily operates through Puerto Rico Growth, United States, Recovery, and Treasury segments. Doral Financial has a market cap of $17.7 million and is part of the financial sector. Shares are down 27.1% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Doral Financial 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, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on DRL go as follows:

  • DORAL FINANCIAL 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 two years. During the past fiscal year, DORAL FINANCIAL CORP reported poor results of -$14.84 versus -$2.00 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 280.0% when compared to the same quarter one year ago, falling from $28.26 million to -$50.87 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, DORAL FINANCIAL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $25.70 million or 58.71% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 80.60%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 301.75% 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.

You can view the full analysis from the report here: Doral Financial Ratings Report

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At the close, Urstadt Biddle Properties ( UBP) was down $0.56 (2.8%) to $19.19 on heavy volume. Throughout the day, 2,656 shares of Urstadt Biddle Properties exchanged hands as compared to its average daily volume of 1,100 shares. The stock ranged in price between $19.18-$19.43 after having opened the day at $19.43 as compared to the previous trading day's close of $19.75.

Urstadt Biddle Properties Inc. is a real estate investment trust. The firm invests in the real estate markets of the United States. Urstadt Biddle Properties has a market cap of $186.9 million and is part of the financial sector. Shares are up 5.7% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Urstadt Biddle Properties as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from TheStreet Ratings analysis on UBP go as follows:

  • UBP's revenue growth has slightly outpaced the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 8.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 600.00% and other important driving factors, this stock has surged by 28.45% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, UBP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 40.21% is the gross profit margin for URSTADT BIDDLE PROPERTIES which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 120.72% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $16.44 million or 11.55% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -7.14%.

You can view the full analysis from the report here: Urstadt Biddle Properties 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 $0.03 (6.2%) to $0.45 on light volume. Throughout the day, 8,045 shares of China Housing & Land Development exchanged hands as compared to its average daily volume of 38,100 shares. The stock ranged in price between $0.45-$0.49 after having opened the day at $0.46 as compared to the previous trading day's close of $0.48.

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 $15.7 million and is part of the financial sector. Shares are down 5.9% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates China Housing & Land Development as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and poor profit margins.

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Highlights from TheStreet Ratings analysis on CHLN go as follows:

  • Although CHLN's debt-to-equity ratio of 2.58 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. Compared to other companies in the Real Estate Management & Development industry and the overall market, CHINA HOUSING & LAND DEV INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • CHLN'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 78.78%, 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 gross profit margin for CHINA HOUSING & LAND DEV INC is rather low; currently it is at 23.40%. Regardless of CHLN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.83% trails the industry average.
  • CHINA HOUSING & LAND DEV INC reported significant earnings per share improvement in the most recent quarter compared to 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, CHINA HOUSING & LAND DEV INC reported lower earnings of $0.34 versus $0.56 in the prior year.

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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