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 "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 LaSalle Hotel Properties as such a stock due to the following factors:
- LHO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.5 million.
- LHO has traded 392,988 shares today.
- LHO traded in a range 219.7% of the normal price range with a price range of $1.23.
- LHO traded below its daily resistance level (quality: 13 days, meaning that the stock is crossing a resistance level set by the last 13 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 LHO:
LaSalle Hotel Properties, a real estate investment trust (REIT), engages in the purchase, ownership, redevelopment, and leasing of primarily upscale and luxury full-service hotels in convention, resort, and urban business markets in the United States. The stock currently has a dividend yield of 3.6%. LHO has a PE ratio of 22.9. Currently there are 7 analysts that rate LaSalle Hotel Properties a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for LaSalle Hotel Properties has been 1.1 million shares per day over the past 30 days. LaSalle Hotel has a market cap of $4.3 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.29 and a short float of 5.9% with 2.85 days to cover. Shares are up 33.9% year-to-date as of the close of trading on Tuesday.
rates LaSalle Hotel Properties as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 213.33% and other important driving factors, this stock has surged by 32.35% 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, LHO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- LASALLE HOTEL PROPERTIES 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. We feel that this trend should continue. During the past fiscal year, LASALLE HOTEL PROPERTIES increased its bottom line by earning $0.73 versus $0.52 in the prior year. This year, the market expects an improvement in earnings ($1.90 versus $0.73).
- 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 210.1% when compared to the same quarter one year prior, rising from $32.64 million to $101.22 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.7%. Since the same quarter one year prior, revenues rose by 13.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- You can view the full LaSalle Hotel Properties Ratings Report.