uploads/2015/07/Bottom-Performer21.jpg

Why Were CSAL and CYS the Bottom REIT Performers in Mid-July?

By

Updated

Potentially overvalued stocks

Some of the worst performers in the iShares US Real Estate ETF (IYR) in mid-July were Communications Sales & LE (CSAL), CYS Investment (CYS), American Capital Agency (AGNC), Orchid Island Capital (ORC), and Capstead Mortgage (CMO).

These stocks are trading below their average volume, having a high short ratio (high selling pressure), lower earnings potential, and a lower return on equity. Analysts perceive that these are potentially overvalued stocks.

Article continues below advertisement

Communications Sales & LE (CSAL) fundamentals

Communications Sales & LE’s total market cap stands at $3.8 billion, having a trailing-12-month PE of 4.18x and an enterprise to book value of 7.36x. The trailing five-day returns have been a meager -3.55%. The short interest ratio for this stock is as high as 14.28%, which indicates that the market is bearish on this stock. Also, projected sales for 2016 are 0%, which is discouraging for investors.

Recently, on June 29, 2015, CSAL’s stock price fell by 7%. The move came with pretty good selling volume. That was because CSAL stock has recorded earnings surprises of 0.0%.

CYS Fundamentals

CYS Fundamentals’ total market cap stands at $1.24 billion, having a trailing-12-month PE of 7.68x and an enterprise to book value of 7.36x. The trailing five-day returns have been a meager -6.42%. The short interest ratio for this stock is as high as 8.28%, which indicates that the market is bearish on this stock. Also, projected sales for 2016 are -8%, which is discouraging for investors. The lower return on asset at 2.39% indicates that the company isn’t efficiently utilizing its resources.

Advertisement

More From Market Realist