Retail Opportunity Investments (ROIC) Showing Signs Of Being Strong And Under The Radar - TheStreet

Trade-Ideas LLC identified

Retail Opportunity Investments

(

ROIC

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Retail Opportunity Investments as such a stock due to the following factors:

  • ROIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.4 million.
  • ROIC has traded 6.5373000000000001108446667785756289958953857421875 options contracts today.
  • ROIC is making at least a new 3-day high.
  • ROIC has a PE ratio of 82.
  • ROIC is mentioned 0.48 times per day on StockTwits.
  • ROIC has not yet been mentioned on StockTwits today.
  • ROIC is currently in the upper 20% of its 1-year range.
  • ROIC is in the upper 35% of its 20-day range.
  • ROIC is in the upper 45% of its 5-day range.
  • ROIC is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on ROIC:

Retail Opportunity Investments Corp., a real estate investment trust (REIT), engages in the acquisition, ownership, and management of necessity-based community and neighborhood shopping centers in the eastern and western regions of the United States. The stock currently has a dividend yield of 3.8%. ROIC has a PE ratio of 82. Currently there are 4 analysts that rate Retail Opportunity Investments a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Retail Opportunity Investments has been 899,400 shares per day over the past 30 days. Retail Opportunity Investments has a market cap of $1.7 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.49 and a short float of 6.5% with 6.90 days to cover. Shares are up 8.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Retail Opportunity Investments as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations 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:

  • The revenue growth came in higher than the industry average of 9.8%. Since the same quarter one year prior, revenues rose by 25.2%. 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.
  • 38.29% is the gross profit margin for RETAIL OPPORTUNITY INVTS CP which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ROIC's net profit margin of 11.25% significantly trails the industry average.
  • Net operating cash flow has slightly increased to $14.31 million or 8.62% when compared to the same quarter last year. Despite an increase in cash flow, RETAIL OPPORTUNITY INVTS CP's average is still marginally south of the industry average growth rate of 13.29%.
  • 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. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • RETAIL OPPORTUNITY INVTS CP's earnings per share declined by 28.6% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, RETAIL OPPORTUNITY INVTS CP reported lower earnings of $0.23 versus $0.47 in the prior year. This year, the market expects earnings to be in line with last year ($0.23 versus $0.23).

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