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 Douglas Emmett as such a stock due to the following factors:
- DEI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.5 million.
- DEI is making at least a new 3-day high.
- DEI has a PE ratio of 90.4.
- DEI is mentioned 0.42 times per day on StockTwits.
- DEI has not yet been mentioned on StockTwits today.
- DEI is currently in the upper 20% of its 1-year range.
- DEI is in the upper 35% of its 20-day range.
- DEI is in the upper 45% of its 5-day range.
- DEI 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 DEI:
Douglas Emmett, Inc., a real estate investment trust, owns and operates office and multifamily properties in California and Hawaii. As of December 31, 2007, the company's office portfolio consisted of 48 properties and multifamily portfolio consisted of 9 properties. The stock currently has a dividend yield of 2.9%. DEI has a PE ratio of 90.4. Currently there are 2 analysts that rate Douglas Emmett a buy, 4 analysts rate it a sell, and 6 rate it a hold.
The average volume for Douglas Emmett has been 816,500 shares per day over the past 30 days. Douglas Emmett has a market cap of $4.0 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.99 and a short float of 2.2% with 1.95 days to cover. Shares are up 20.2% year-to-date as of the close of trading on Wednesday.
rates Douglas Emmett as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and unimpressive growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 12.2%. Since the same quarter one year prior, revenues slightly increased by 3.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant 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 change in net income from the same quarter one year ago has exceeded that of the Real Estate Investment Trusts (REITs) industry average, but is less than that of the S&P 500. The net income has decreased by 2.0% when compared to the same quarter one year ago, dropping from $13.64 million to $13.36 million.
- The gross profit margin for DOUGLAS EMMETT INC is currently lower than what is desirable, coming in at 30.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 8.51% significantly trails the industry average.
- You can view the full Douglas Emmett Ratings Report.