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 American Assets as such a stock due to the following factors:
- AAT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.0 million.
- AAT is making at least a new 3-day high.
- AAT has a PE ratio of 83.5.
- AAT is mentioned 0.35 times per day on StockTwits.
- AAT has not yet been mentioned on StockTwits today.
- AAT is currently in the upper 20% of its 1-year range.
- AAT is in the upper 35% of its 20-day range.
- AAT is in the upper 45% of its 5-day range.
- AAT 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 AAT:
American Assets Trust, Inc. operates as a real estate investment trust in the United States. The company owns, operates, acquires, and develops retail, office, multifamily, and mixed-use properties primarily in southern California, northern California, and Hawaii. The stock currently has a dividend yield of 2.4%. AAT has a PE ratio of 83.5. Currently there are 5 analysts that rate American Assets a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for American Assets has been 151,400 shares per day over the past 30 days. American Assets has a market cap of $1.7 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.77 and a short float of 3.8% with 7.17 days to cover. Shares are up 22.6% year-to-date as of the close of trading on Monday.
rates American Assets as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and increase in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor 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. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- AMERICAN ASSETS TRUST INC has improved earnings per share by 36.4% 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, AMERICAN ASSETS TRUST INC increased its bottom line by earning $0.38 versus $0.24 in the prior year. This year, the market expects an improvement in earnings ($0.42 versus $0.38).
- 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. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, AMERICAN ASSETS TRUST INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for AMERICAN ASSETS TRUST INC is currently lower than what is desirable, coming in at 34.25%. Regardless of AAT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AAT's net profit margin of 9.66% is significantly lower than the industry average.
- You can view the full American Assets Ratings Report.