Watch Out: Barbarians At The Gate For Vornado Realty (VNO)
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 "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Vornado Realty as such a stock due to the following factors:
- VNO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $99.7 million.
- VNO has traded 1.0 million shares today.
- VNO traded in a range 243.2% of the normal price range with a price range of $4.57.
- VNO traded above its daily resistance level (quality: 28 days, meaning that the stock is crossing a resistance level set by the last 28 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on VNO:
Vornado Realty Trust is a publicly owned real estate investment trust. The firm invests in the real estate markets of the United States. It makes investments in commercial real estate properties to create its portfolio. The firm was formerly known as Vornado Inc. The stock currently has a dividend yield of 2.3%. VNO has a PE ratio of 68.9. Currently there are 3 analysts that rate Vornado Realty a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Vornado Realty has been 850,700 shares per day over the past 30 days. Vornado has a market cap of $20.5 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.41 and a short float of 1.7% with 2.87 days to cover. Shares are down 7.4% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Vornado Realty as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- VNO's very impressive revenue growth greatly exceeded the industry average of 10.0%. Since the same quarter one year prior, revenues leaped by 94.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- VORNADO REALTY TRUST reported significant earnings per share improvement 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. We feel that this trend should continue. During the past fiscal year, VORNADO REALTY TRUST turned its bottom line around by earning $1.57 versus -$0.15 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $1.57).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 1199.8% when compared to the same quarter one year prior, rising from -$48.52 million to $533.60 million.
- 36.53% is the gross profit margin for VORNADO REALTY TRUST which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 77.55% significantly outperformed against the industry average.
- Net operating cash flow has increased to $306.74 million or 22.11% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 10.56%.
- You can view the full Vornado Realty Ratings Report.
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