EastGroup Properties (EGP) Showing Signs Of Being Strong And Under The Radar

Trade-Ideas LLC identified EastGroup Properties (EGP) as a strong and under the radar candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

EastGroup Properties

(

EGP

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified EastGroup Properties as such a stock due to the following factors:

  • EGP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.1 million.
  • EGP has traded 4.0298999999999995935695551452226936817169189453125 options contracts today.
  • EGP is making at least a new 3-day high.
  • EGP has a PE ratio of 39.
  • EGP is mentioned 1.35 times per day on StockTwits.
  • EGP has not yet been mentioned on StockTwits today.
  • EGP is currently in the upper 20% of its 1-year range.
  • EGP is in the upper 35% of its 20-day range.
  • EGP is in the upper 45% of its 5-day range.
  • EGP is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on EGP:

EastGroup Properties, Inc., a real estate investment trust (REIT), focuses on the development, acquisition, and operation of industrial properties in the United States. The stock currently has a dividend yield of 3.3%. EGP has a PE ratio of 39. Currently there are 2 analysts that rate EastGroup Properties a buy, 2 analysts rate it a sell, and 4 rate it a hold.

The average volume for EastGroup Properties has been 188,100 shares per day over the past 30 days. EastGroup has a market cap of $2.3 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.96 and a short float of 4.6% with 5.41 days to cover. Shares are up 27.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates EastGroup Properties as a

buy

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity, solid stock price performance and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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 202.2% when compared to the same quarter one year prior, rising from $14.53 million to $43.91 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 12.1%. Since the same quarter one year prior, revenues slightly increased by 7.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, EASTGROUP PROPERTIES's return on equity exceeds that of both the industry average and the S&P 500.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
  • Net operating cash flow has increased to $45.77 million or 19.68% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 9.08%.

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