Trade-Ideas LLC identified

QTS Realty

(

QTS

) as a strong and under the radar 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 $12.2 million.
  • QTS has traded 15.417899999999999494093572138808667659759521484375 options contracts today.
  • QTS is making at least a new 3-day high.
  • QTS has a PE ratio of 75.
  • QTS is mentioned 0.84 times per day on StockTwits.
  • QTS has not yet been mentioned on StockTwits today.
  • QTS is currently in the upper 20% of its 1-year range.
  • QTS is in the upper 35% of its 20-day range.
  • QTS is in the upper 45% of its 5-day range.
  • QTS 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 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 2.9%. QTS has a PE ratio of 75. Currently there are 7 analysts that rate QTS Realty a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for QTS Realty has been 327,900 shares per day over the past 30 days. QTS has a market cap of $1.8 billion and is part of the financial sector and real estate industry. Shares are up 32.6% year-to-date as of the close of trading on Tuesday.

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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, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from the ratings report include:

  • QTS's very impressive revenue growth greatly exceeded the industry average of 6.1%. Since the same quarter one year prior, revenues leaped by 53.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • QTS REALTY TRUST INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, QTS REALTY TRUST INC increased its bottom line by earning $0.52 versus $0.23 in the prior year. This year, the market expects an improvement in earnings ($0.56 versus $0.52).
  • Powered by its strong earnings growth of 54.54% and other important driving factors, this stock has surged by 31.92% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
  • 36.02% is the gross profit margin for QTS REALTY TRUST INC which we consider to be strong. Regardless of QTS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, QTS's net profit margin of 7.88% is significantly lower than the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, QTS REALTY TRUST INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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