Trade-Ideas LLC identified

QTS Realty

(

QTS

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified QTS Realty as such a stock due to the following factors:

  • QTS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.0 million.
  • QTS has traded 7,126 shares today.
  • QTS is trading at a new lifetime high.

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More details on QTS:

QTS Realty Trust, Inc. focuses on the ownership, development, and operation of carrier-neutral data centers in the United States. The company was founded in 2013 and is headquartered in Overland Park, Kansas. The stock currently has a dividend yield of 2.5%. QTS has a PE ratio of 103. Currently there are 7 analysts that rate QTS Realty a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for QTS Realty has been 401,200 shares per day over the past 30 days. QTS has a market cap of $2.7 billion and is part of the financial sector and real estate industry. Shares are up 23.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates QTS Realty as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • QTS's very impressive revenue growth greatly exceeded the industry average of 12.1%. Since the same quarter one year prior, revenues leaped by 54.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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 44.3% when compared to the same quarter one year prior, rising from $4.08 million to $5.89 million.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 37.83% over the past year, a rise that has exceeded that of the S&P 500 Index. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • The gross profit margin for QTS REALTY TRUST INC is currently lower than what is desirable, coming in at 34.41%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.21% significantly trails the industry average.
  • Net operating cash flow has decreased to $11.98 million or 14.06% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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