Watch Out: Barbarians At The Gate For Vornado Realty (VNO)

Trade-Ideas LLC identified Vornado Realty (VNO) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Vornado Realty

(

VNO

) 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 $81.7 million.
  • VNO has traded 102,599 shares today.
  • VNO traded in a range 215.9% of the normal price range with a price range of $3.28.
  • VNO traded above its daily resistance level (quality: 156 days, meaning that the stock is crossing a resistance level set by the last 156 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in VNO with the Ticky from Trade-Ideas. See the FREE profile for VNO NOW at Trade-Ideas

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 2.5%. VNO has a PE ratio of 44. Currently there are 3 analysts that rate Vornado Realty a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Vornado Realty has been 800,900 shares per day over the past 30 days. Vornado has a market cap of $19.0 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 2.3% with 4.01 days to cover. Shares are down 14.6% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Vornado Realty as a

buy

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and increase in stock price during the past year. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • 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 year. We feel that this trend should continue. During the past fiscal year, VORNADO REALTY TRUST turned its bottom line around by earning $1.41 versus -$0.15 in the prior year. This year, the market expects an improvement in earnings ($2.25 versus $1.41).
  • 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 91.8% when compared to the same quarter one year prior, rising from $97.01 million to $186.02 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.2%. Since the same quarter one year prior, revenues slightly increased by 2.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, VORNADO REALTY TRUST's return on equity is below that of both the industry average and the S&P 500.
  • After a year of stock price fluctuations, the net result is that VNO's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Loading ...