Retail Opportunity Investments (ROIC) Showing Signs Of Being Strong And Under The Radar
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.
Trade-Ideas LLC identified
Retail Opportunity Investments
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Retail Opportunity Investments as such a stock due to the following factors:
- ROIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.2 million.
- ROIC is making at least a new 3-day high.
- ROIC has a PE ratio of 72.4.
- ROIC is mentioned 2.00 times per day on StockTwits.
- ROIC has not yet been mentioned on StockTwits today.
- ROIC is currently in the upper 20% of its 1-year range.
- ROIC is in the upper 35% of its 20-day range.
- ROIC is in the upper 45% of its 5-day range.
- ROIC 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 ROIC:
Retail Opportunity Investments Corp., a real estate investment trust (REIT), engages in the acquisition, ownership, and management of necessity-based community and neighborhood shopping centers in the eastern and western regions of the United States. The stock currently has a dividend yield of 3.9%. ROIC has a PE ratio of 72.4. Currently there is 1 analyst that rates Retail Opportunity Investments a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Retail Opportunity Investments has been 600,200 shares per day over the past 30 days. Retail Opportunity Investments has a market cap of $1.6 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.40 and a short float of 4.6% with 3.64 days to cover. Shares are up 3.8% year-to-date as of the close of trading on Friday.
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Analysis:
rates Retail Opportunity Investments as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.0%. Since the same quarter one year prior, revenues rose by 24.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- Net operating cash flow has significantly increased by 189.56% to $12.76 million when compared to the same quarter last year. In addition, RETAIL OPPORTUNITY INVTS CP has also vastly surpassed the industry average cash flow growth rate of 10.56%.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Real Estate Investment Trusts (REITs) industry average, but is greater than that of the S&P 500. The net income increased by 21.1% when compared to the same quarter one year prior, going from $3.79 million to $4.59 million.
- 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, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The gross profit margin for RETAIL OPPORTUNITY INVTS CP is currently lower than what is desirable, coming in at 27.91%. Regardless of ROIC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ROIC's net profit margin of 10.98% is significantly lower than the industry average.
- You can view the full Retail Opportunity Investments Ratings Report.
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