Trade-Ideas LLC identified

Camden Property

(

CPT

) 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 Camden Property as such a stock due to the following factors:

  • CPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.2 million.
  • CPT has traded 270,852 shares today.
  • CPT traded in a range 214.1% of the normal price range with a price range of $2.65.
  • CPT traded below its daily resistance level (quality: 20 days, meaning that the stock is crossing a resistance level set by the last 20 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 CPT:

Camden Property Trust is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It is engaged in the ownership, development, acquisition, management, and disposition of multifamily residential apartment communities. The stock currently has a dividend yield of 3.6%. CPT has a PE ratio of 19. Currently there are 5 analysts that rate Camden Property a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Camden Property has been 706,500 shares per day over the past 30 days. Camden Property has a market cap of $6.7 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 7.9% with 6.87 days to cover. Shares are up 5.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Camden Property as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, notable return on equity, solid stock price performance and increase in net income. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 5.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Net operating cash flow has increased to $118.09 million or 18.11% when compared to the same quarter last year. In addition, CAMDEN PROPERTY TRUST has also modestly surpassed the industry average cash flow growth rate of 13.29%.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, CAMDEN PROPERTY TRUST has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
  • CAMDEN PROPERTY TRUST reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CAMDEN PROPERTY TRUST increased its bottom line by earning $3.26 versus $1.70 in the prior year. For the next year, the market is expecting a contraction of 21.3% in earnings ($2.57 versus $3.26).

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