Federal Realty Investment (FRT) Is Today's Storm The Castle Stock
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.Trade-Ideas LLC identified Federal Realty Investment (FRT) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Federal Realty Investment as such a stock due to the following factors:
- FRT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.2 million.
- FRT has traded 26,133 shares today.
- FRT is trading at 3.68 times the normal volume for the stock at this time of day.
- FRT crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.EXCLUSIVE OFFER: Get the inside scoop on opportunities in FRT with the Ticky from Trade-Ideas. See the FREE profile for FRT NOW at Trade-IdeasMore details on FRT: Federal Realty Investment Trust operates as a real estate investment trust, which engages in the ownership, management, development, and redevelopment of retail and mixed-use properties. The stock currently has a dividend yield of 3%. FRT has a PE ratio of 47.6. Currently there are 6 analysts that rate Federal Realty Investment a buy, no analysts rate it a sell, and 8 rate it a hold.The average volume for Federal Realty Investment has been 419,900 shares per day over the past 30 days. Federal Realty Investment has a market cap of $6.7 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.58 and a short float of 4.7% with 4.10 days to cover. Shares are up 2.3% year-to-date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Federal Realty Investment as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.Highlights from the ratings report include:
- 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 60.7% when compared to the same quarter one year prior, rising from $38.64 million to $62.10 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.6%. Since the same quarter one year prior, revenues slightly increased by 0.9%. 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.
- Net operating cash flow has increased to $80.03 million or 35.05% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.60%.
- FEDERAL REALTY INVESTMENT TR' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FEDERAL REALTY INVESTMENT TR increased its bottom line by earning $2.33 versus $1.99 in the prior year. This year, the market expects an improvement in earnings ($2.64 versus $2.33).
- 40.85% is the gross profit margin for FEDERAL REALTY INVESTMENT TR which we consider to be strong. Regardless of FRT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FRT's net profit margin of 38.93% significantly outperformed against the industry.
- You can view the full Federal Realty Investment 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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