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 or Stephanie Link.
Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Boston Properties as such a stock due to the following factors:
- BXP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $97.8 million.
- BXP has traded 1.1 million shares today.
- BXP traded in a range 220% of the normal price range with a price range of $4.52.
- BXP traded below its daily resistance level (quality: 13 days, meaning that the stock is crossing a resistance level set by the last 13 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on BXP:
Boston Properties, Inc., a real estate investment trust (REIT), together with its subsidiaries, engages in the ownership and development of office properties. The stock currently has a dividend yield of 1.8%. BXP has a PE ratio of 67.1. Currently there are 14 analysts that rate Boston Properties a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Boston Properties has been 861,500 shares per day over the past 30 days. Boston has a market cap of $21.9 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.34 and a short float of 2.6% with 3.86 days to cover. Shares are up 11.5% year-to-date as of the close of trading on Thursday.
rates Boston Properties as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 72.91% and other important driving factors, this stock has surged by 33.43% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BXP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.5%. Since the same quarter one year prior, revenues slightly increased by 6.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 35.50% is the gross profit margin for BOSTON PROPERTIES INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 20.81% trails the industry average.
- BOSTON PROPERTIES INC 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, BOSTON PROPERTIES INC increased its bottom line by earning $4.02 versus $1.65 in the prior year. For the next year, the market is expecting a contraction of 53.7% in earnings ($1.86 versus $4.02).
- 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 decreased by 16.1% when compared to the same quarter one year ago, dropping from $155.32 million to $130.37 million.
- You can view the full Boston Properties Ratings Report.