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.

Trade-Ideas LLC identified

UDR

(

UDR

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

  • UDR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.5 million.
  • UDR has traded 6.94029999999999969162445268011651933193206787109375 options contracts today.
  • UDR is making at least a new 3-day high.
  • UDR has a PE ratio of 32.
  • UDR is mentioned 2.00 times per day on StockTwits.
  • UDR has not yet been mentioned on StockTwits today.
  • UDR is currently in the upper 20% of its 1-year range.
  • UDR is in the upper 35% of its 20-day range.
  • UDR is in the upper 45% of its 5-day range.
  • UDR 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 UDR:

UDR, Inc. is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It owns, operates, acquires, renovates, develops, redevelops, and manages multifamily apartment communities. The stock currently has a dividend yield of 3.3%. UDR has a PE ratio of 32. Currently there are 6 analysts that rate UDR a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for UDR has been 1.7 million shares per day over the past 30 days. UDR has a market cap of $8.6 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.13 and a short float of 4.3% with 4.33 days to cover. Shares are up 8.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates UDR as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, impressive record of earnings per share 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:

  • 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 189.4% when compared to the same quarter one year prior, rising from $30.01 million to $86.86 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.0%. Since the same quarter one year prior, revenues slightly increased by 5.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • UDR INC 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, UDR INC turned its bottom line around by earning $0.60 versus -$0.01 in the prior year. For the next year, the market is expecting a contraction of 28.3% in earnings ($0.43 versus $0.60).
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, UDR INC's return on equity is below that of both the industry average and the S&P 500.

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