AvalonBay Communities (AVB) On Momo Momentum Watch Today

Trade-Ideas LLC identified AvalonBay Communities (AVB) as a momo momentum candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

AvalonBay Communities

(

AVB

) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified AvalonBay Communities as such a stock due to the following factors:

  • AVB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $150.1 million.
  • AVB has a PE ratio of 32.
  • AVB is currently in the upper 30% of its 1-year range.
  • AVB is in the upper 25% of its 20-day range.
  • AVB is in the upper 35% of its 5-day range.
  • AVB is currently trading above yesterday's high.
  • AVB has experienced a gap between today's open and yesterday's close of 1%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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More details on AVB:

AvalonBay Communities, Inc. engages in the development, redevelopment, acquisition, ownership, and operation of multifamily communities in the United States. The stock currently has a dividend yield of 3%. AVB has a PE ratio of 32. Currently there are 8 analysts that rate AvalonBay Communities a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for AvalonBay Communities has been 819,700 shares per day over the past 30 days. AvalonBay has a market cap of $24.9 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.41 and a short float of 3.3% with 4.66 days to cover. Shares are down 1.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates AvalonBay Communities as a

buy

. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 14.3% when compared to the same quarter one year prior, going from $208.14 million to $237.93 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.9%. Since the same quarter one year prior, revenues slightly increased by 8.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 43.06% is the gross profit margin for AVALONBAY COMMUNITIES INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 46.09% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $277.78 million or 17.51% when compared to the same quarter last year. In addition, AVALONBAY COMMUNITIES INC has also modestly surpassed the industry average cash flow growth rate of 11.47%.

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