Trade-Ideas LLC identified

Camden Property

(

CPT

) 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 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 $52.5 million.
  • CPT has traded 294,388 shares today.
  • CPT is trading at 2.37 times the normal volume for the stock at this time of day.
  • CPT 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 CPT:

TST Recommends

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 3.8%. CPT has a PE ratio of 18. Currently there are 8 analysts that rate Camden Property a buy, 2 analysts rate it a sell, and 8 rate it a hold.

The average volume for Camden Property has been 628,500 shares per day over the past 30 days. Camden Property has a market cap of $6.4 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.26 and a short float of 7% with 6.47 days to cover. Shares are down 4% year-to-date as of the close of trading on Thursday.

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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 and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • CPT's revenue growth has slightly outpaced the industry average of 6.1%. Since the same quarter one year prior, revenues slightly increased by 6.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in 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. 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.
  • CAMDEN PROPERTY TRUST' earnings per share from the most recent quarter came in slightly below the year earlier 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 21.2% in earnings ($2.57 versus $3.26).
  • The change in net income 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 has decreased by 3.2% when compared to the same quarter one year ago, dropping from $38.28 million to $37.04 million.
  • CPT is off 11.09% from its price level of one year ago, reflecting a combination of (a) the general market trend and (b) the company's own weaknesses, including its lower earnings per share compared to the year-earlier quarter. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

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