Trade-Ideas LLC identified

Taubman Centers

(

TCO

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

  • TCO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.7 million.
  • TCO has traded 22.37310000000000087538865045644342899322509765625 options contracts today.
  • TCO is making at least a new 3-day high.
  • TCO has a PE ratio of 45.
  • TCO is mentioned 0.71 times per day on StockTwits.
  • TCO has not yet been mentioned on StockTwits today.
  • TCO is currently in the upper 20% of its 1-year range.
  • TCO is in the upper 35% of its 20-day range.
  • TCO is in the upper 45% of its 5-day range.
  • TCO 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 TCO:

Taubman Centers, Inc. operates as a real estate investment trust. As of June 30, 2005, the company owned a 63% managing general partner's interest in The Taubman Realty Group Limited Partnership (the operating partnership). The stock currently has a dividend yield of 3.1%. TCO has a PE ratio of 45. Currently there are 5 analysts that rate Taubman Centers a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Taubman Centers has been 369,800 shares per day over the past 30 days. Taubman Centers has a market cap of $4.7 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.45 and a short float of 5.1% with 6.61 days to cover. Shares are up 1.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Taubman Centers as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, 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:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 12.1%. Since the same quarter one year prior, revenues slightly increased by 8.1%. 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 $63.38 million or 23.10% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 9.08%.
  • 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. 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.
  • TAUBMAN CENTERS INC's earnings per share declined by 12.8% 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, TAUBMAN CENTERS INC reported lower earnings of $1.76 versus $13.46 in the prior year. This year, the market expects an improvement in earnings ($2.52 versus $1.76).
  • 46.65% is the gross profit margin for TAUBMAN CENTERS INC which we consider to be strong. Regardless of TCO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TCO's net profit margin of 19.24% is significantly lower than the industry average.

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