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 strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Sunstone Hotel Investors as such a stock due to the following factors:
- SHO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.8 million.
- SHO is making at least a new 3-day high.
- SHO has a PE ratio of 65.8.
- SHO is mentioned 0.35 times per day on StockTwits.
- SHO has not yet been mentioned on StockTwits today.
- SHO is currently in the upper 20% of its 1-year range.
- SHO is in the upper 35% of its 20-day range.
- SHO is in the upper 45% of its 5-day range.
- SHO 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 SHO:
Sunstone Hotel Investors, Inc. operates as a real estate investment trust. The firm engages in the acquisition, ownership, asset management, renovation, and sale of luxury, upper upscale, and upscale full-service hotels in the United States. Its portfolio also includes mid-scale hotels. The stock currently has a dividend yield of 1.3%. SHO has a PE ratio of 65.8. Currently there are 2 analysts that rate Sunstone Hotel Investors a buy, no analysts rate it a sell, and 9 rate it a hold.
The average volume for Sunstone Hotel Investors has been 1.4 million shares per day over the past 30 days. Sunstone Hotel Investors has a market cap of $3.1 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.46 and a short float of 4.3% with 3.79 days to cover. Shares are up 11.7% year-to-date as of the close of trading on Wednesday.
rates Sunstone Hotel Investors as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, increase in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 12.2%. Since the same quarter one year prior, revenues rose by 28.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
- SUNSTONE HOTEL INVESTORS 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. During the past fiscal year, SUNSTONE HOTEL INVESTORS INC continued to lose money by earning -$0.03 versus -$0.26 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus -$0.03).
- 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 123.0% when compared to the same quarter one year prior, rising from $18.78 million to $41.87 million.
- You can view the full Sunstone Hotel Investors Ratings Report.