Trade-Ideas: QTS Realty (QTS) Is Today's New Lifetime High Stock - TheStreet

Trade-Ideas LLC identified

QTS Realty

(

QTS

) as a new lifetime high 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 $15.0 million.
  • QTS has traded 2,257 shares today.
  • QTS is trading at a new lifetime high.

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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 88. Currently there are 5 analysts that rate QTS Realty a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for QTS Realty has been 351,500 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 31.8% year-to-date as of the close of trading on Friday.

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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, growth in earnings per share 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:

  • The revenue growth came in higher than the industry average of 9.8%. Since the same quarter one year prior, revenues rose by 32.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • QTS REALTY TRUST INC has improved earnings per share by 9.1% 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 ($0.54 versus $0.52).
  • 38.98% is the gross profit margin for QTS REALTY TRUST INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, QTS's net profit margin of 6.79% significantly trails the industry average.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 36.18% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • 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. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, QTS REALTY TRUST INC's return on equity significantly trails that of both the industry average and the S&P 500.

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