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Trade-Ideas LLC identified
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified American Realty Capital Properties as such a stock due to the following factors:
- ARCP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $130.8 million.
- ARCP has traded 7.0 million shares today.
- ARCP is trading at 4.42 times the normal volume for the stock at this time of day.
- ARCP crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. 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 on. 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 ARCP:
American Realty Capital Properties, Inc. owns and acquires single tenant, freestanding commercial real estate that is net leased on a medium-term basis, primarily to investment grade credit rated and other creditworthy tenants. The company principally invests in retail and office properties. The stock currently has a dividend yield of 7.8%. Currently there are 3 analysts that rate American Realty Capital Properties a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for American Realty Capital Properties has been 15.4 million shares per day over the past 30 days. American has a market cap of $9.9 billion and is part of the financial sector and real estate industry. The stock has a beta of -0.12 and a short float of 4.7% with 3.83 days to cover. Shares are up 1% year-to-date as of the close of trading on Monday.
rates American Realty Capital Properties as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- ARCP's very impressive revenue growth greatly exceeded the industry average of 10.1%. Since the same quarter one year prior, revenues leaped by 647.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- AMERICAN RLTY CAP PPTY INC has improved earnings per share by 27.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMERICAN RLTY CAP PPTY INC reported poor results of -$2.30 versus -$0.47 in the prior year. This year, the market expects an improvement in earnings (-$1.52 versus -$2.30).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, AMERICAN RLTY CAP PPTY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$106.13 million or 1466.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 118.7% when compared to the same quarter one year ago, falling from -$141.16 million to -$308.68 million.
- You can view the full American Realty Capital Properties Ratings Report.