Trade-Ideas LLC identified

Retail Opportunity Investments

(

ROIC

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Retail Opportunity Investments as such a stock due to the following factors:

  • ROIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.6 million.
  • ROIC has traded 5.4626999999999998891553332214243710041046142578125 options contracts today.
  • ROIC is making at least a new 3-day high.
  • ROIC has a PE ratio of 8.
  • ROIC is mentioned 0.74 times per day on StockTwits.
  • ROIC has not yet been mentioned on StockTwits today.
  • ROIC is currently in the upper 20% of its 1-year range.
  • ROIC is in the upper 35% of its 20-day range.
  • ROIC is in the upper 45% of its 5-day range.
  • ROIC 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 ROIC:

Retail Opportunity Investments Corp., a real estate investment trust (REIT), engages in the acquisition, ownership, and management of necessity-based community and neighborhood shopping centers in the eastern and western regions of the United States. The stock currently has a dividend yield of 3.7%. ROIC has a PE ratio of 8. Currently there are 5 analysts that rate Retail Opportunity Investments a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Retail Opportunity Investments has been 526,300 shares per day over the past 30 days. Retail Opportunity Investments has a market cap of $1.8 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.53 and a short float of 4.4% with 4.84 days to cover. Shares are up 3.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Retail Opportunity Investments as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, expanding profit margins and solid stock price performance. 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:

  • The revenue growth came in higher than the industry average of 7.2%. Since the same quarter one year prior, revenues rose by 22.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • RETAIL OPPORTUNITY INVTS CP has improved earnings per share by 40.0% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, RETAIL OPPORTUNITY INVTS CP increased its bottom line by earning $0.24 versus $0.23 in the prior year. This year, the market expects an improvement in earnings ($0.31 versus $0.24).
  • 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 50.9% when compared to the same quarter one year prior, rising from $4.59 million to $6.92 million.
  • 39.05% is the gross profit margin for RETAIL OPPORTUNITY INVTS CP 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, ROIC's net profit margin of 13.49% significantly trails the industry average.
  • 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, the stock's 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 the other strengths this company displays justify these higher price levels.

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