3 Stocks Moving The Real Estate Industry Upward

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 121 points (0.7%) at 17,751 as of Wednesday, July 29, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,248 issues advancing vs. 830 declining with 135 unchanged.

The Real Estate industry as a whole closed the day up 0.6% versus the S&P 500, which was up 0.7%. Top gainers within the Real Estate industry included BRASILAGRO - CIA Bras de Prop Agricolas ( LND), up 4.8%, Power REIT ( PW), up 2.7%, BRT Realty ( BRT), up 6.2%, Intergroup ( INTG), up 2.3% and Trade Street Residential ( TSRE), up 4.4%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Trade Street Residential ( TSRE) is one of the companies that pushed the Real Estate industry higher today. Trade Street Residential was up $0.30 (4.4%) to $7.10 on light volume. Throughout the day, 17,413 shares of Trade Street Residential exchanged hands as compared to its average daily volume of 43,000 shares. The stock ranged in a price between $6.80-$7.12 after having opened the day at $6.95 as compared to the previous trading day's close of $6.80.

Trade Street Residential, Inc., a real estate investment trust, engages in acquiring, owning, operating, and managing garden-style and mid-rise apartment communities in mid-sized cities and suburban submarkets of larger cities primarily in the southeastern United States. Trade Street Residential has a market cap of $253.2 million and is part of the financial sector. Shares are down 11.6% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Trade Street Residential a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Trade Street Residential as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on TSRE go as follows:

  • Net operating cash flow has significantly decreased to $1.23 million or 64.89% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for TRADE STREET RESIDENTIAL INC is rather low; currently it is at 20.14%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, TSRE's net profit margin of -2.85% significantly underperformed when compared to the industry average.
  • TSRE has underperformed the S&P 500 Index, declining 5.29% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, TRADE STREET RESIDENTIAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • TRADE STREET RESIDENTIAL 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TRADE STREET RESIDENTIAL INC continued to lose money by earning -$0.83 versus -$1.06 in the prior year. This year, the market expects an improvement in earnings (-$0.01 versus -$0.83).

You can view the full analysis from the report here: Trade Street Residential Ratings Report

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At the close, Intergroup ( INTG) was up $0.50 (2.3%) to $22.00 on light volume. Throughout the day, 3,935 shares of Intergroup exchanged hands as compared to its average daily volume of 6,500 shares. The stock ranged in a price between $21.25-$22.00 after having opened the day at $21.58 as compared to the previous trading day's close of $21.50.

Intergroup has a market cap of $50.0 million and is part of the financial sector. Shares are up 22.1% year-to-date as of the close of trading on Tuesday.

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BRT Realty ( BRT) was another company that pushed the Real Estate industry higher today. BRT Realty was up $0.42 (6.2%) to $7.19 on heavy volume. Throughout the day, 11,300 shares of BRT Realty exchanged hands as compared to its average daily volume of 3,400 shares. The stock ranged in a price between $6.75-$7.19 after having opened the day at $6.90 as compared to the previous trading day's close of $6.77.

BRT Realty Trust, a real estate investment trust (REIT), owns, operates, and develops multi-family properties in the United States. It operates through two segments, Multi-Family Real Estate and Other Real Estate. BRT Realty has a market cap of $98.0 million and is part of the financial sector. Shares are down 3.0% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate BRT Realty a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates BRT Realty as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on BRT go as follows:

  • The gross profit margin for BRT REALTY TRUST is currently extremely low, coming in at 13.20%. Regardless of BRT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, BRT's net profit margin of -3.65% significantly underperformed when compared to 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. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength 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.
  • BRT REALTY TRUST 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, BRT REALTY TRUST reported poor results of -$0.76 versus -$0.25 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 71.1% when compared to the same quarter one year prior, rising from -$2.59 million to -$0.75 million.

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

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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.