Trade-Ideas LLC identified

Equity Residential

(

EQR

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Equity Residential as such a stock due to the following factors:

  • EQR has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 1.61 mentions/day.
  • EQR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $221.9 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on EQR:

Equity Residential, a real estate investment trust (REIT), engages in the acquisition, development, and management of multifamily properties in the United States. The stock currently has a dividend yield of 3.2%. EQR has a PE ratio of 6. Currently there are 5 analysts that rate Equity Residential a buy, 1 analyst rates it a sell, and 12 rate it a hold.

The average volume for Equity Residential has been 2.4 million shares per day over the past 30 days. Equity has a market cap of $24.4 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.51 and a short float of 2.2% with 2.42 days to cover. Shares are down 16.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Equity Residential as a

buy

. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • 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. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, EQUITY RESIDENTIAL's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 43.02% is the gross profit margin for EQUITY RESIDENTIAL which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 33.62% is above that of the industry average.
  • EQUITY RESIDENTIAL's earnings per share declined by 24.4% 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, EQUITY RESIDENTIAL increased its bottom line by earning $2.35 versus $1.72 in the prior year. This year, the market expects an improvement in earnings ($11.14 versus $2.35).
  • EQR, with its decline in revenue, underperformed when compared the industry average of 10.4%. Since the same quarter one year prior, revenues slightly dropped by 6.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, EQR has underperformed the S&P 500 Index, declining 10.74% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

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