Trade-Ideas LLC identified
) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified AvalonBay Communities as such a stock due to the following factors:
- AVB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $112.5 million.
- AVB has traded 191,844 shares today.
- AVB is trading at 2.52 times the normal volume for the stock at this time of day.
- AVB crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.
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More details on AVB:
AvalonBay Communities, Inc. engages in the development, redevelopment, acquisition, ownership, and operation of multifamily communities in the United States. The stock currently has a dividend yield of 2.9%. AVB has a PE ratio of 33. Currently there are 7 analysts that rate AvalonBay Communities a buy, 1 analyst rates it a sell, and 9 rate it a hold.
The average volume for AvalonBay Communities has been 796,700 shares per day over the past 30 days. AvalonBay has a market cap of $25.4 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 3.3% with 6.33 days to cover. Shares are down 0.9% year-to-date as of the close of trading on Tuesday.
rates AvalonBay Communities as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, solid stock price performance, increase in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- AVB's revenue growth has slightly outpaced the industry average of 12.0%. Since the same quarter one year prior, revenues rose by 12.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- 43.20% is the gross profit margin for AVALONBAY COMMUNITIES INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 37.29% is above that of the industry average.
- The net income growth from the same quarter one year ago has 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 14.6% when compared to the same quarter one year prior, going from $172.33 million to $197.45 million.
- AVALONBAY COMMUNITIES INC has improved earnings per share by 11.6% 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, AVALONBAY COMMUNITIES INC increased its bottom line by earning $5.51 versus $4.92 in the prior year. For the next year, the market is expecting a contraction of 7.1% in earnings ($5.12 versus $5.51).
- You can view the full AvalonBay Communities Ratings Report.