The Real Estate industry as a whole closed the day down 1.7% versus the S&P 500, which was down 1.7%. Laggards within the Real Estate industry included Institutional Financial Markets ( IFMI), down 3.5%, China Housing & Land Development ( CHLN), down 4.2%, Condor Hospitality ( CDOR), down 4.2%, Supertel Hospitality ( SPPR), down 4.2% and Elbit Imaging ( EMITF), down 1.5%.

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

CoStar Group ( CSGP) is one of the companies that pushed the Real Estate industry lower today. CoStar Group was down $6.49 (3.5%) to $181.61 on average volume. Throughout the day, 124,488 shares of CoStar Group exchanged hands as compared to its average daily volume of 164,200 shares. The stock ranged in price between $180.37-$186.96 after having opened the day at $186.03 as compared to the previous trading day's close of $188.10.

CoStar Group, Inc. provides information, analytics, and online marketplaces services to the commercial real estate industry in the United States, Canada, the United Kingdom, and France. CoStar Group has a market cap of $6.3 billion and is part of the financial sector. Shares are up 2.4% year-to-date as of the close of trading on Thursday. Currently there are 7 analysts who rate CoStar Group a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates CoStar Group 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 also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on CSGP go as follows:

  • CSGP's revenue growth has slightly outpaced the industry average of 6.7%. Since the same quarter one year prior, revenues rose by 15.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Although CSGP's debt-to-equity ratio of 0.25 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 2.88, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to its closing price of one year ago, CSGP's share price has jumped by 35.74%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • 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 Internet Software & Services industry. The net income has significantly decreased by 281.4% when compared to the same quarter one year ago, falling from $8.25 million to -$14.97 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 Internet Software & Services industry and the overall market, COSTAR GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: CoStar Group Ratings Report

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At the close, Supertel Hospitality ( SPPR) was down $0.06 (4.2%) to $1.38 on light volume. Throughout the day, 6,561 shares of Supertel Hospitality exchanged hands as compared to its average daily volume of 12,700 shares. The stock ranged in price between $1.38-$1.47 after having opened the day at $1.45 as compared to the previous trading day's close of $1.44.

Supertel Hospitality has a market cap of $13.2 million and is part of the financial sector. Shares are down 3.9% year-to-date as of the close of trading on Thursday.

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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 $0.08 (4.2%) to $1.86 on heavy volume. Throughout the day, 9,930 shares of China Housing & Land Development exchanged hands as compared to its average daily volume of 5,900 shares. The stock ranged in price between $1.72-$2.07 after having opened the day at $1.73 as compared to the previous trading day's close of $1.94.

China Housing & Land Development, Inc., a real estate development company, acquires, develops, manages, and sells 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 $11.6 million and is part of the financial sector. Shares are down 23.9% year-to-date as of the close of trading on Thursday.

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, poor profit margins and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on CHLN go as follows:

  • The debt-to-equity ratio is very high at 2.68 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • 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.
  • The gross profit margin for CHINA HOUSING & LAND DEV INC is rather low; currently it is at 19.12%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -2.01% is significantly below that of the industry average.
  • 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 85.79%, 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.
  • 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 swung to a loss, reporting -$3.10 versus $1.70 in the prior year.

You can view the full analysis from the report here: China Housing & Land Development Ratings Report

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