Trade-Ideas LLC identified

Extra Space Storage

(

EXR

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Extra Space Storage as such a stock due to the following factors:

  • EXR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $91.1 million.
  • EXR has traded 1.1 million shares today.
  • EXR is trading at 2.08 times the normal volume for the stock at this time of day.
  • EXR is trading at a new high 3.00% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on EXR:

Extra Space Storage, Inc. operates as a real estate investment trust (REIT) in the United States. It engages in property management and development activities that include acquiring, managing, developing, and selling, as well as the rental of self-storage facilities. The stock currently has a dividend yield of 3.6%. EXR has a PE ratio of 49. Currently there are 9 analysts that rate Extra Space Storage a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Extra Space Storage has been 902,400 shares per day over the past 30 days. Extra Space has a market cap of $10.9 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.27 and a short float of 3.4% with 2.95 days to cover. Shares are down 1.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Extra Space Storage as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 12.0%. Since the same quarter one year prior, revenues rose by 45.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 43.47% and other important driving factors, this stock has surged by 29.60% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, EXR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • EXTRA SPACE STORAGE INC has improved earnings per share by 43.5% 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. We feel that this trend should continue. During the past fiscal year, EXTRA SPACE STORAGE INC increased its bottom line by earning $1.58 versus $1.54 in the prior year. This year, the market expects an improvement in earnings ($2.35 versus $1.58).
  • 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 53.7% when compared to the same quarter one year prior, rising from $53.74 million to $82.59 million.
  • The gross profit margin for EXTRA SPACE STORAGE INC is rather high; currently it is at 58.67%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 31.51% trails the industry average.

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