What To Sell: 3 Sell-Rated Dividend Stocks ATAX, WHLR, STB
Wheeler Real Estate Investment (NASDAQ: WHLR) shares currently have a dividend yield of 9.30%. Wheeler Real Estate Investment Trust, Inc. engages in acquiring, financing, developing, leasing, owning, and managing real estate properties in the mid-Atlantic, southeast, and southwest United States. The average volume for Wheeler Real Estate Investment has been 23,800 shares per day over the past 30 days. Wheeler Real Estate Investment has a market cap of $32.8 million and is part of the real estate industry. Shares are up 6.1% year-to-date as of the close of trading on Friday. TheStreet Ratings rates Wheeler Real Estate Investment as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, WHEELER REAL ESTATE INVT TR's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for WHEELER REAL ESTATE INVT TR is currently lower than what is desirable, coming in at 26.12%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, WHLR's net profit margin of -6.77% significantly underperformed when compared to the industry average.
- WHLR'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 25.09%, 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.
- WHEELER REAL ESTATE INVT TR 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, WHEELER REAL ESTATE INVT TR reported poor results of -$0.94 versus -$0.27 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 40.4% when compared to the same quarter one year prior, rising from -$0.40 million to -$0.24 million.
- You can view the full Wheeler Real Estate Investment Ratings Report.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts