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 momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Simon Property Group as such a stock due to the following factors:
- SPG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $246.5 million.
- SPG has a PE ratio of 37.4.
- SPG is currently in the upper 30% of its 1-year range.
- SPG is in the upper 25% of its 20-day range.
- SPG is in the upper 35% of its 5-day range.
- SPG is currently trading above yesterday's high.
- SPG has experienced a gap between today's open and yesterday's close of 1%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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More details on SPG:
Simon Property Group, Inc. is an equity real estate investment trust. The firm invests in the real estate markets across the globe. It engages in investment, ownership, and management of properties. The stock currently has a dividend yield of 2.9%. SPG has a PE ratio of 37.4. Currently there are 15 analysts that rate Simon Property Group a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Simon Property Group has been 1.4 million shares per day over the past 30 days. Simon Property Group has a market cap of $55.0 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.90 and a short float of 2.2% with 4.38 days to cover. Shares are up 15.7% year-to-date as of the close of trading on Wednesday.
rates Simon Property Group as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 12.2%. Since the same quarter one year prior, revenues slightly increased by 8.0%. 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.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, SIMON PROPERTY GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for SIMON PROPERTY GROUP INC is rather high; currently it is at 51.40%. 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 19.59% trails the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of 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.
- SIMON PROPERTY GROUP INC's earnings per share declined by 9.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, SIMON PROPERTY GROUP INC reported lower earnings of $3.86 versus $4.74 in the prior year. This year, the market expects an improvement in earnings ($4.49 versus $3.86).
- You can view the full Simon Property Group Ratings Report.