Strong And Under The Radar: Federal Realty Investment (FRT)
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
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Federal Realty Investment as such a stock due to the following factors:
- FRT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $45.7 million.
- FRT is making at least a new 3-day high.
- FRT has a PE ratio of 59.7.
- FRT is mentioned 1.32 times per day on StockTwits.
- FRT has not yet been mentioned on StockTwits today.
- FRT is currently in the upper 20% of its 1-year range.
- FRT is in the upper 35% of its 20-day range.
- FRT is in the upper 45% of its 5-day range.
- FRT 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 FRT:
Federal Realty Investment Trust operates as a real estate investment trust, which engages in the ownership, management, development, and redevelopment of retail and mixed-use properties. The stock currently has a dividend yield of 2.5%. FRT has a PE ratio of 59.7. Currently there are 3 analysts that rate Federal Realty Investment a buy, 1 analyst rates it a sell, and 10 rate it a hold.
The average volume for Federal Realty Investment has been 325,100 shares per day over the past 30 days. Federal Realty Investment has a market cap of $9.6 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.21 and a short float of 4.5% with 6.70 days to cover. Shares are up 5.7% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Federal Realty Investment as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- FEDERAL REALTY INVESTMENT TR has improved earnings per share by 21.4% 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 year. We feel that this trend should continue. During the past fiscal year, FEDERAL REALTY INVESTMENT TR increased its bottom line by earning $2.42 versus $2.08 in the prior year. This year, the market expects an improvement in earnings ($2.77 versus $2.42).
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.0%. Since the same quarter one year prior, revenues slightly increased by 7.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has increased to $104.28 million or 18.81% when compared to the same quarter last year. In addition, FEDERAL REALTY INVESTMENT TR has also modestly surpassed the industry average cash flow growth rate of 10.56%.
- 40.73% is the gross profit margin for FEDERAL REALTY INVESTMENT TR which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, FRT's net profit margin of 19.89% significantly trails the industry average.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 26.72% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Federal Realty Investment Ratings Report.
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