CommonWealth REIT (CWH): Today's Featured Real Estate Laggard
Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
CommonWealth REIT ( CWH) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day up 1.4%. By the end of trading, CommonWealth REIT fell $0.46 (-2.0%) to $22.17 on light volume. Throughout the day, 1,405,298 shares of CommonWealth REIT exchanged hands as compared to its average daily volume of 3,996,400 shares. The stock ranged in price between $22.17-$22.85 after having opened the day at $22.65 as compared to the previous trading day's close of $22.63. Other companies within the Real Estate industry that declined today were: China HGS Real Estate ( HGSH), down 6.4%, Optibase ( OBAS), down 4.8%, China Housing & Land Development ( CHLN), down 4.7% and Gladstone Land ( LAND), down 3.4%.
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CommonWealth REIT is a real estate investment trust launched and managed by Reit Management & Research LLC. The fund invests in the real estate markets of the United States. It seeks to invest in office buildings, industrial buildings, and leased industrial land. CommonWealth REIT has a market cap of $2.7 billion and is part of the financial sector. The company has a P/E ratio of 64.5, above the S&P 500 P/E ratio of 17.7. Shares are up 44.6% year to date as of the close of trading on Thursday.
TheStreet Ratings rates CommonWealth REIT as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and poor profit margins.
- You can view the full CommonWealth REIT Ratings Report .
On the positive front, Homex Development ( HXM), down 40.5%, American Spectrum Realty ( AQQ), down 11.1%, Vestin Realty Mortgage II ( VRTB), down 10.6% and Vestin Realty Mortgage I ( VRTA), down 7.4% , were all gainers within the real estate industry with Host Hotels & Resorts ( HST) being today's featured real estate industry leader.
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For investors not wanting singular stock exposure, 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).