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 Macerich as such a stock due to the following factors:
- MAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.2 million.
- MAC is making at least a new 3-day high.
- MAC has a PE ratio of 112.5.
- MAC is mentioned 0.55 times per day on StockTwits.
- MAC has not yet been mentioned on StockTwits today.
- MAC is currently in the upper 20% of its 1-year range.
- MAC is in the upper 35% of its 20-day range.
- MAC is in the upper 45% of its 5-day range.
- MAC 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 MAC:
The Macerich Company is an independent real estate investment trust. The firm invests in the real estate markets of the United States. The stock currently has a dividend yield of 3.9%. MAC has a PE ratio of 112.5. Currently there are 6 analysts that rate Macerich a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Macerich has been 855,900 shares per day over the past 30 days. Macerich has a market cap of $9.0 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.14 and a short float of 3% with 4.54 days to cover. Shares are up 11.4% year-to-date as of the close of trading on Wednesday.
rates Macerich as a
. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the ratings report include:
- Net operating cash flow has increased to $92.66 million or 23.14% when compared to the same quarter last year. In addition, MACERICH CO has also modestly surpassed the industry average cash flow growth rate of 18.37%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
- The revenue fell significantly faster than the industry average of 11.5%. Since the same quarter one year prior, revenues fell by 20.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, MACERICH CO underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for MACERICH CO is currently lower than what is desirable, coming in at 26.44%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 6.04% significantly trails the industry average.
- You can view the full Macerich Ratings Report.