Sun Communities (SUI) Is Today's Pre-Market Mover With Heavy Volume Stock

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 or Stephanie Link.

Trade-Ideas LLC identified Sun Communities ( SUI) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sun Communities as such a stock due to the following factors:

  • SUI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.7 million.
  • SUI traded 48,100 shares today in the pre-market hours as of 9:04 AM, representing 22.2% of its average daily volume.

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More details on SUI:

Sun Communities, Inc. operates as a real estate investment trust (REIT). It owns, operates, and develops manufactured housing communities in the midwestern, southern, and southeastern United States. The stock currently has a dividend yield of 5.5%. SUI has a PE ratio of 147.0. Currently there are 2 analysts that rate Sun Communities a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Sun Communities has been 168,200 shares per day over the past 30 days. Sun has a market cap of $1.6 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.76 and a short float of 4% with 4.16 days to cover. Shares are up 6.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sun Communities as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:
  • SUI's revenue growth has slightly outpaced the industry average of 6.3%. Since the same quarter one year prior, revenues rose by 15.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SUN COMMUNITIES 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. This trend suggests that the performance of the business is improving. During the past fiscal year, SUN COMMUNITIES INC increased its bottom line by earning $0.32 versus $0.20 in the prior year. This year, the market expects an improvement in earnings ($0.43 versus $0.32).
  • The gross profit margin for SUN COMMUNITIES INC is rather low; currently it is at 20.77%. Regardless of SUI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SUI's net profit margin of 1.51% is significantly lower than the industry average.
  • In its most recent trading session, SUI has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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