General Growth Properties (GGP) Spotted As Roof Leaker Today
Trade-Ideas LLC identified
(
) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified General Growth Properties as such a stock due to the following factors:
- GGP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $131.0 million.
- GGP has traded 1.7 million shares today.
- GGP is trading at 1.92 times the normal volume for the stock at this time of day.
- GGP crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.
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More details on GGP:
General Growth Properties, Inc is an equity real estate investment trust. The firm invests in the real estate markets of the United States. It engages in owning, managing, leasing, and redeveloping high-quality regional malls. General Growth Properties, Inc is based in Chicago, Illinois. The stock currently has a dividend yield of 2.6%. GGP has a PE ratio of 16. Currently there are 9 analysts that rate General Growth Properties a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for General Growth Properties has been 4.5 million shares per day over the past 30 days. General Growth has a market cap of $25.4 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.83 and a short float of 1.6% with 2.02 days to cover. Shares are up 2.5% year-to-date as of the close of trading on Thursday.
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Analysis:
rates General Growth Properties as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins. 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:
- 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. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- GENERAL GROWTH PPTYS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GENERAL GROWTH PPTYS INC increased its bottom line by earning $0.39 versus $0.30 in the prior year. This year, the market expects an improvement in earnings ($1.41 versus $0.39).
- 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 66.0% when compared to the same quarter one year prior, rising from $74.61 million to $123.85 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, GENERAL GROWTH PPTYS INC's return on equity exceeds that of both the industry average and the S&P 500.
- 44.43% is the gross profit margin for GENERAL GROWTH PPTYS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 20.13% trails the industry average.
- You can view the full General Growth Properties Ratings Report.
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