Trade-Ideas LLC identified

Realty Income

(

O

) as a new lifetime high 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 $137.6 million.
  • O has traded 1.2 million shares today.
  • O is trading at a new lifetime high.

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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 4.4%. O has a PE ratio of 49. Currently there are 5 analysts that rate Realty Income a buy, 2 analysts rate it a sell, and 9 rate it a hold.

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The average volume for Realty Income has been 2.2 million shares per day over the past 30 days. Realty Income has a market cap of $13.5 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.35 and a short float of 13.3% with 9.32 days to cover. Shares are up 6.9% 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 revenue growth, good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • O's revenue growth has slightly outpaced the industry average of 6.1%. Since the same quarter one year prior, revenues slightly increased by 9.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • REALTY INCOME CORP reported flat earnings per share in the most recent quarter. 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 $1.02 versus $0.71 in the prior year. This year, the market expects an improvement in earnings ($1.04 versus $1.02).
  • Net operating cash flow has slightly increased to $151.24 million or 7.02% when compared to the same quarter last year. Despite an increase in cash flow, REALTY INCOME CORP's average is still marginally south of the industry average growth rate of 9.43%.
  • The gross profit margin for REALTY INCOME CORP is rather high; currently it is at 52.97%. 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, the net profit margin of 26.06% trails the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, REALTY INCOME CORP's return on equity is below that of both the industry average and the S&P 500.

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