Strong And Under The Radar Today: Alexandria Real Estate Equities (ARE)
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 or Stephanie Link.
Trade-Ideas LLC identified
Alexandria Real Estate Equities
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Alexandria Real Estate Equities as such a stock due to the following factors:
- ARE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.1 million.
- ARE is making at least a new 3-day high.
- ARE has a PE ratio of 96.0.
- ARE is mentioned 1.06 times per day on StockTwits.
- ARE has not yet been mentioned on StockTwits today.
- ARE is currently in the upper 20% of its 1-year range.
- ARE is in the upper 35% of its 20-day range.
- ARE is in the upper 45% of its 5-day range.
- ARE 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 ARE:
Alexandria Real Estate Equities, Inc., a real estate investment trust (REIT), engages in the ownership, operation, management, development, acquisition, and redevelopment of properties for the life sciences industry. The stock currently has a dividend yield of 3.1%. ARE has a PE ratio of 96.0. Currently there are 2 analysts that rate Alexandria Real Estate Equities a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Alexandria Real Estate Equities has been 409,900 shares per day over the past 30 days. Alexandria Real Estate Equities has a market cap of $6.8 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.56 and a short float of 1.8% with 2.89 days to cover. Shares are up 8.1% year-to-date as of the close of trading on Friday.
Analysis:
rates Alexandria Real Estate Equities as a
. The company's strengths can be seen in multiple areas, such as its revenue growth and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- ARE's revenue growth has slightly outpaced the industry average of 3.1%. Since the same quarter one year prior, revenues rose by 12.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, ARE's share price has jumped by 30.89%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- ALEXANDRIA R E EQUITIES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ALEXANDRIA R E EQUITIES INC reported lower earnings of $0.99 versus $1.60 in the prior year. This year, the market expects an improvement in earnings ($1.80 versus $0.99).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, ALEXANDRIA R E EQUITIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for ALEXANDRIA R E EQUITIES INC is currently extremely low, coming in at 4.67%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -3.90% is significantly below that of the industry average.
- You can view the full Alexandria Real Estate Equities Ratings Report.
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