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Trade-Ideas LLC identified
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified American Realty Capital Properties as such a stock due to the following factors:
- ARCP has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 15.16 mentions/day.
- ARCP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $292.5 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on ARCP:
American Realty Capital Properties, Inc. owns and acquires single tenant, freestanding commercial real estate that is net leased on a medium-term basis, primarily to investment grade credit rated and other creditworthy tenants. The company principally invests in retail and office properties. The stock currently has a dividend yield of 8.1%. Currently there are 3 analysts that rate American Realty Capital Properties a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for American Realty Capital Properties has been 10.6 million shares per day over the past 30 days. American has a market cap of $11.2 billion and is part of the financial sector and real estate industry. The stock has a beta of -0.07 and a short float of 2.8% with 0.69 days to cover. Shares are down 22.2% year-to-date as of the close of trading on Wednesday.
rates American Realty Capital Properties as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- ARCP's very impressive revenue growth greatly exceeded the industry average of 12.2%. Since the same quarter one year prior, revenues leaped by 595.2%. Growth in the company's revenue appears to have helped boost 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 44.0% when compared to the same quarter one year prior, rising from -$71.96 million to -$40.33 million.
- AMERICAN RLTY CAP PPTY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMERICAN RLTY CAP PPTY INC reported poor results of -$2.34 versus -$0.47 in the prior year. This year, the market expects an improvement in earnings (-$0.59 versus -$2.34).
- ARCP has underperformed the S&P 500 Index, declining 5.89% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The gross profit margin for AMERICAN RLTY CAP PPTY INC is currently extremely low, coming in at 6.89%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, ARCP's net profit margin of -10.55% significantly underperformed when compared to the industry average.
- You can view the full American Realty Capital Properties Ratings Report.