Trade-Ideas LLC identified

Public Storage

(

PSA

) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Public Storage as such a stock due to the following factors:

  • PSA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $248.4 million.
  • PSA has a PE ratio of 42.
  • PSA is currently in the upper 30% of its 1-year range.
  • PSA is in the upper 25% of its 20-day range.
  • PSA is in the upper 35% of its 5-day range.
  • PSA is currently trading above yesterday's high.
  • PSA has experienced a gap between today's open and yesterday's close of 1.1%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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TST Recommends

More details on PSA:

Public Storage is an equity real estate investment trust. It engages in the acquisition, development, ownership, and operation of self-storage facilities in the United States and Europe. The stock currently has a dividend yield of 2.7%. PSA has a PE ratio of 42. Currently there are 3 analysts that rate Public Storage a buy, 1 analyst rates it a sell, and 13 rate it a hold.

The average volume for Public Storage has been 804,500 shares per day over the past 30 days. Public has a market cap of $43.0 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.34 and a short float of 1.9% with 2.58 days to cover. Shares are up 0.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Public Storage as a

buy

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

  • PSA's revenue growth has slightly outpaced the industry average of 6.1%. Since the same quarter one year prior, revenues slightly increased by 8.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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.
  • PUBLIC STORAGE has improved earnings per share by 17.9% 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. We feel that this trend should continue. During the past fiscal year, PUBLIC STORAGE increased its bottom line by earning $5.25 versus $4.89 in the prior year. This year, the market expects an improvement in earnings ($6.02 versus $5.25).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 15.7% when compared to the same quarter one year prior, going from $293.46 million to $339.57 million.
  • The gross profit margin for PUBLIC STORAGE is rather high; currently it is at 57.37%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 53.46% significantly outperformed against the industry average.

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