Trade-Ideas LLC identified

Realty Income

(

O

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Realty Income as such a stock due to the following factors:

  • O has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $97.9 million.
  • O is down 2.1% today from today's close.

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More details on O:

Realty Income Corporation is a publicly traded real estate investment trust. It invests in the real estate markets of the United States. The firm makes investments in commercial real estate. Realty Income Corporation was founded in 1969 and is based in Escondido, California. The stock currently has a dividend yield of 3.7%. O has a PE ratio of 6. Currently there are 5 analysts that rate Realty Income a buy, 2 analysts rate it a sell, and 9 rate it a hold.

The average volume for Realty Income has been 1.7 million shares per day over the past 30 days. Realty Income has a market cap of $16.0 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.17 and a short float of 11% with 13.00 days to cover. Shares are up 21.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Realty Income as a

buy

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

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, O's share price has jumped by 36.81%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.8%. Since the same quarter one year prior, revenues slightly increased by 8.2%. 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 increased to $136.29 million or 15.64% when compared to the same quarter last year. In addition, REALTY INCOME CORP has also modestly surpassed the industry average cash flow growth rate of 9.52%.
  • REALTY INCOME CORP's earnings per share declined by 7.4% 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, REALTY INCOME CORP increased its bottom line by earning $1.09 versus $1.02 in the prior year. This year, the market expects an improvement in earnings ($1.14 versus $1.09).
  • The gross profit margin for REALTY INCOME CORP is rather high; currently it is at 53.22%. Regardless of O's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, O's net profit margin of 26.29% is significantly lower than the industry average.

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