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 Education Realty as such a stock due to the following factors:
- EDR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.2 million.
- EDR is making at least a new 3-day high.
- EDR has a PE ratio of 51.2.
- EDR is mentioned 1.06 times per day on StockTwits.
- EDR has not yet been mentioned on StockTwits today.
- EDR is currently in the upper 20% of its 1-year range.
- EDR is in the upper 35% of its 20-day range.
- EDR is in the upper 45% of its 5-day range.
- EDR 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 EDR:
EdR is a real estate investment trust. The firm invests in the real estate markets of United States. It invests collegiate housing communities. The firm develops, acquires, owns, and manages collegiate housing communities located near university campuses. The stock currently has a dividend yield of 4.3%. EDR has a PE ratio of 51.2. Currently there are 5 analysts that rate Education Realty a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Education Realty has been 1.4 million shares per day over the past 30 days. has a market cap of $1.6 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.42 and a short float of 9.4% with 5.03 days to cover. Shares are up 26.2% year-to-date as of the close of trading on Wednesday.
rates Education Realty as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and reasonable valuation levels. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 47.0%. 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, 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 EDUCATION REALTY TRUST INC is rather low; currently it is at 17.28%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, EDR's net profit margin of 33.44% significantly outperformed against the industry.
- EDUCATION REALTY TRUST 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, EDUCATION REALTY TRUST INC turned its bottom line around by earning $0.06 versus -$0.01 in the prior year. For the next year, the market is expecting a contraction of 33.3% in earnings ($0.04 versus $0.06).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, EDUCATION REALTY TRUST INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full Education Realty Ratings Report.