Trade-Ideas: Realty Income (O) Is Today's Post-Market Leader Stock - TheStreet

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.

Trade-Ideas LLC identified

Realty Income

(

O

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Realty Income as such a stock due to the following factors:

  • O has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $84.5 million.
  • O is up 2.8% today from today's close.

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More details on O:

Realty Income Corporation is a publicly traded real estate investment trust. It invests in the real estate markets of the United States. The firm makes investments in commercial real estate. Realty Income Corporation was founded in 1969 and is based in Escondido, California. The stock currently has a dividend yield of 4.4%. O has a PE ratio of 50.2. Currently there is 1 analyst that rates Realty Income a buy, 2 analysts rate it a sell, and 9 rate it a hold.

The average volume for Realty Income has been 2.3 million shares per day over the past 30 days. Realty Income has a market cap of $11.6 billion and is part of the financial sector and real estate industry. Shares are up 7.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Realty Income as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations, expanding profit margins and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • O's revenue growth has slightly outpaced the industry average of 10.1%. Since the same quarter one year prior, revenues rose by 14.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 68.42% and other important driving factors, this stock has surged by 27.69% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Net operating cash flow has slightly increased to $187.61 million or 8.29% when compared to the same quarter last year. Despite an increase in cash flow, REALTY INCOME CORP's average is still marginally south of the industry average growth rate of 11.97%.
  • 45.89% is the gross profit margin for REALTY INCOME CORP which we consider to be strong. Regardless of O's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 31.42% trails the industry average.
  • REALTY INCOME CORP 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 two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, REALTY INCOME CORP increased its bottom line by earning $1.02 versus $0.71 in the prior year. For the next year, the market is expecting a contraction of 3.9% in earnings ($0.98 versus $1.02).

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