Today's Weak On High Volume Stock: National Retail Properties (NNN)
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified National Retail Properties as such a stock due to the following factors:
- NNN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $48.0 million.
- NNN has traded 106,717 shares today.
- NNN is trading at 5.44 times the normal volume for the stock at this time of day.
- NNN is trading at a new low 3.03% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on NNN:
National Retail Properties, Inc. is a publicly owned equity real estate investment trust. The firm acquires, owns, manages, and develops retail properties in the United States. The stock currently has a dividend yield of 4.5%. NNN has a PE ratio of 29. Currently there are 6 analysts that rate National Retail Properties a buy, 2 analysts rate it a sell, and 8 rate it a hold.
The average volume for National Retail Properties has been 1.1 million shares per day over the past 30 days. National Retail has a market cap of $5.2 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.59 and a short float of 6% with 5.32 days to cover. Shares are down 2% year-to-date as of the close of trading on Thursday.
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Analysis:
rates National Retail Properties as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, expanding profit margins, growth in earnings per share and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- NNN's revenue growth has slightly outpaced the industry average of 6.2%. Since the same quarter one year prior, revenues rose by 12.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 15.1% when compared to the same quarter one year prior, going from $47.94 million to $55.20 million.
- The gross profit margin for NATIONAL RETAIL PROPERTIES is rather high; currently it is at 68.79%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 44.81% significantly outperformed against the industry average.
- NATIONAL RETAIL PROPERTIES has improved earnings per share by 9.7% 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, NATIONAL RETAIL PROPERTIES increased its bottom line by earning $1.24 versus $1.06 in the prior year. For the next year, the market is expecting a contraction of 1.6% in earnings ($1.22 versus $1.24).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, NATIONAL RETAIL PROPERTIES's return on equity is below that of both the industry average and the S&P 500.
- You can view the full National Retail Properties Ratings Report.
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