Today's Strong And Under The Radar Stock Is American Campus Communities (ACC)

Trade-Ideas LLC identified American Campus Communities (ACC) as a strong and under the radar candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

American Campus Communities

(

ACC

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

  • ACC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.3 million.
  • ACC has traded 26.82090000000000173940861714072525501251220703125 options contracts today.
  • ACC is making at least a new 3-day high.
  • ACC has a PE ratio of 69.
  • ACC is mentioned 1.58 times per day on StockTwits.
  • ACC has not yet been mentioned on StockTwits today.
  • ACC is currently in the upper 20% of its 1-year range.
  • ACC is in the upper 35% of its 20-day range.
  • ACC is in the upper 45% of its 5-day range.
  • ACC 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 ACC:

American Campus Communities, Inc. is an independent equity real estate investment trust. The firm invests in the real estate markets of the United States. It primarily engages in developing, owning, and managing high-quality student housing communities. The stock currently has a dividend yield of 3.2%. ACC has a PE ratio of 69. Currently there are 5 analysts that rate American Campus Communities a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for American Campus Communities has been 966,100 shares per day over the past 30 days. American Campus 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 0.37 and a short float of 1.9% with 3.21 days to cover. Shares are up 25.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates American Campus Communities as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.9%. Since the same quarter one year prior, revenues slightly increased by 4.0%. 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, ACC's share price has jumped by 32.53%, exceeding the performance of the broader market during that same time frame. 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.
  • AMERICAN CAMPUS COMMUNITIES's earnings per share declined by 41.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, AMERICAN CAMPUS COMMUNITIES increased its bottom line by earning $1.02 versus $0.55 in the prior year. For the next year, the market is expecting a contraction of 22.1% in earnings ($0.80 versus $1.02).
  • The gross profit margin for AMERICAN CAMPUS COMMUNITIES is currently lower than what is desirable, coming in at 29.62%. Regardless of ACC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ACC's net profit margin of 22.64% is significantly lower than the industry average.
  • Net operating cash flow has decreased to $64.07 million or 13.69% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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