UDR Inc Stock Upgraded (UDR)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK ( TheStreet) -- UDR (NYSE: UDR) has been upgraded by TheStreet Ratings from sell to buy. The company's strengths can be seen in multiple areas, such as its revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • UDR INC 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. We feel that this trend should continue. During the past fiscal year, UDR INC continued to lose money by earning -$0.25 versus -$0.67 in the prior year. This year, the market expects an improvement in earnings ($0.00 versus -$0.25).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.5%. Since the same quarter one year prior, revenues slightly increased by 7.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, UDR INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • UDR has underperformed the S&P 500 Index, declining 6.65% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
  • The gross profit margin for UDR INC is currently extremely low, coming in at 14.50%. Regardless of UDR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, UDR's net profit margin of -0.14% significantly underperformed when compared to the industry average.
.

UDR, Inc. is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It owns, operates, acquires, renovates, develops, redevelops, and manages multifamily apartment communities. UDR has a market cap of $6.13 billion and is part of the financial sector and real estate industry. Shares are up 3.4% year to date as of the close of trading on Wednesday.

You can view the full UDR Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100% See his top picks for 14-days FREE.
null

If you liked this article you might like

S&P Dow Jones Indices Launching New Real Estate Sector

UDR (UDR) Highlighted As Strong And Under The Radar Stock Of The Day

UDR (UDR) Roof Leaking Today

Dividend Watch: 3 Stocks Going Ex-Dividend Tomorrow: VGI, PDT, UDR

Eyes On UDR (UDR): Highlighted Storm The Castle Stock