Trade-Ideas LLC identified

DDR

(

DDR

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified DDR as such a stock due to the following factors:

  • DDR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.6 million.
  • DDR has traded 6 options contracts today.
  • DDR is making at least a new 3-day high.
  • DDR has a PE ratio of 33.
  • DDR is mentioned 0.65 times per day on StockTwits.
  • DDR has not yet been mentioned on StockTwits today.
  • DDR is currently in the upper 20% of its 1-year range.
  • DDR is in the upper 35% of its 20-day range.
  • DDR is in the upper 45% of its 5-day range.
  • DDR is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on DDR:

DDR Corp. is an equity real estate investment trust. It invests in the real estate markets of the United States and Puerto Rico. The firm is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. The stock currently has a dividend yield of 4.3%. DDR has a PE ratio of 33. Currently there are 2 analysts that rate DDR a buy, no analysts rate it a sell, and 13 rate it a hold.

The average volume for DDR has been 2.4 million shares per day over the past 30 days. DDR 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 0.71 and a short float of 3.8% with 2.11 days to cover. Shares are up 4.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates DDR as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 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 118.7% when compared to the same quarter one year prior, rising from -$243.79 million to $45.57 million.
  • 38.68% is the gross profit margin for DDR CORP which we consider to be strong. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, DDR's net profit margin of 16.39% significantly trails the industry average.
  • DDR CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DDR CORP reported poor results of -$0.27 versus -$0.01 in the prior year. This year, the market expects an improvement in earnings ($0.23 versus -$0.27).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, DDR CORP's return on equity is below that of both the industry average and the S&P 500.

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