CubeSmart (CUBE) Hits New Lifetime High - TheStreet

Trade-Ideas LLC identified

CubeSmart

(

CUBE

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified CubeSmart as such a stock due to the following factors:

  • CUBE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $50.0 million.
  • CUBE has traded 100,621 shares today.
  • CUBE is trading at a new lifetime high.

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More details on CUBE:

CubeSmart is a self-administered and self-managed real estate company focused on the ownership, operation, acquisition and development of self-storage facilities in the United States. The stock currently has a dividend yield of 2.3%. CUBE has a PE ratio of 163. Currently there are 6 analysts that rate CubeSmart a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for CubeSmart has been 1.6 million shares per day over the past 30 days. CubeSmart has a market cap of $4.7 billion and is part of the financial sector and real estate industry. The stock has a beta of -0.03 and a short float of 4.6% with 2.78 days to cover. Shares are up 25.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CubeSmart as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, increase in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.8%. Since the same quarter one year prior, revenues rose by 21.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CUBESMART 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. We feel that this trend should continue. During the past fiscal year, CUBESMART increased its bottom line by earning $0.13 versus $0.03 in the prior year. This year, the market expects an improvement in earnings ($0.28 versus $0.13).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 74.0% when compared to the same quarter one year prior, rising from $7.89 million to $13.72 million.
  • Net operating cash flow has increased to $57.26 million or 39.67% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 13.29%.
  • Powered by its strong earnings growth of 75.00% and other important driving factors, this stock has surged by 40.52% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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