General Growth Properties (GGP) Is Water-Logged And Getting Wetter Today
Trade-Ideas LLC identified
(
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified General Growth Properties as such a stock due to the following factors:
- GGP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $75.0 million.
- GGP has traded 3.0 million shares today.
- GGP traded in a range 246.7% of the normal price range with a price range of $1.31.
- GGP traded below its daily resistance level (quality: 11 days, meaning that the stock is crossing a resistance level set by the last 11 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on GGP:
General Growth Properties, Inc is an equity real estate investment trust. The firm invests in the real estate markets of the United States. It engages in owning, managing, leasing, and redeveloping high-quality regional malls. General Growth Properties, Inc is based in Chicago, Illinois. The stock currently has a dividend yield of 2.6%. GGP has a PE ratio of 31. Currently there are 7 analysts that rate General Growth Properties a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for General Growth Properties has been 3.4 million shares per day over the past 30 days. General Growth has a market cap of $26.2 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.77 and a short float of 1.2% with 2.43 days to cover. Shares are up 8.3% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates General Growth Properties as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- GGP's revenue growth has slightly outpaced the industry average of 11.1%. Since the same quarter one year prior, revenues rose by 13.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has slightly increased to $238.02 million or 6.63% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -22.93%.
- 45.64% is the gross profit margin for GENERAL GROWTH PPTYS INC which we consider to be strong. 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 27.57% trails the industry average.
- 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, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- GENERAL GROWTH PPTYS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, GENERAL GROWTH PPTYS INC increased its bottom line by earning $1.43 versus $0.39 in the prior year. For the next year, the market is expecting a contraction of 59.4% in earnings ($0.58 versus $1.43).
- You can view the full General Growth Properties Ratings Report.
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