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 strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified American Campus Communities as such a stock due to the following factors:
- ACC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.6 million.
- ACC is making at least a new 3-day high.
- ACC has a PE ratio of 778.0.
- ACC is mentioned 1.23 times per day on StockTwits.
- ACC has not yet been mentioned on StockTwits today.
- ACC is currently in the upper 20% of its 1-year range.
- ACC is in the upper 35% of its 20-day range.
- ACC is in the upper 45% of its 5-day range.
- ACC 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 ACC:
American Campus Communities, Inc. is an independent equity real estate investment trust. The firm invests in the real estate markets of the United States. It primarily engages in developing, owning, and managing high-quality student housing communities. The stock currently has a dividend yield of 3.9%. ACC has a PE ratio of 778.0. Currently there are 4 analysts that rate American Campus Communities a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for American Campus Communities has been 761,200 shares per day over the past 30 days. American Campus has a market cap of $4.1 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.24 and a short float of 1.7% with 1.18 days to cover. Shares are up 21.1% year-to-date as of the close of trading on Tuesday.
rates American Campus Communities as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- ACC's revenue growth has slightly outpaced the industry average of 12.2%. Since the same quarter one year prior, revenues rose by 15.9%. 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.
- 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. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- The gross profit margin for AMERICAN CAMPUS COMMUNITIES is currently extremely low, coming in at 12.18%. Regardless of ACC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ACC's net profit margin of -3.19% significantly underperformed when compared to the industry average.
- 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 significantly decreased by 112.4% when compared to the same quarter one year ago, falling from $47.18 million to -$5.85 million.
- You can view the full American Campus Communities Ratings Report.