Trade-Ideas LLC identified

Equity Commonwealth

(

EQC

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

  • EQC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.6 million.
  • EQC has traded 72.6715999999999979763742885552346706390380859375 options contracts today.
  • EQC is making at least a new 3-day high.
  • EQC has a PE ratio of 36.
  • EQC is mentioned 0.39 times per day on StockTwits.
  • EQC has not yet been mentioned on StockTwits today.
  • EQC is currently in the upper 20% of its 1-year range.
  • EQC is in the upper 35% of its 20-day range.
  • EQC is in the upper 45% of its 5-day range.
  • EQC 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 EQC:

Equity Commonwealth is a publicly owned real estate investment trust. It invests in the real estate markets across Untied States. The firm invests primarily in the commercial office properties. Equity Commonwealth was formed in 1986 and is based in Chicago, Illinois. EQC has a PE ratio of 36. Currently there are no analysts that rate Equity Commonwealth a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Equity Commonwealth has been 797,600 shares per day over the past 30 days. Equity Commonwealth has a market cap of $3.7 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.26 and a short float of 1.5% with 2.02 days to cover. Shares are up 6.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Equity Commonwealth as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from the ratings report include:

  • 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. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 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 240.4% when compared to the same quarter one year prior, rising from $13.63 million to $46.40 million.
  • 36.10% is the gross profit margin for EQUITY COMMONWEALTH which we consider to be strong. 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 33.35% 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. In comparison to the other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, EQUITY COMMONWEALTH's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has decreased to $22.98 million or 42.99% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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