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 Essex Property ( ESS) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Essex Property as such a stock due to the following factors:
- ESS has 14x the normal benchmarked social activity for this time of the day compared to its average of 1.59 mentions/day.
- ESS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $419.8 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend. EXCLUSIVE OFFER: Get the inside scoop on opportunities in ESS with the Ticky from Trade-Ideas. See the FREE profile for ESS NOW at Trade-Ideas More details on ESS: Essex Property Trust, Inc. operates as a self-administered and self-managed real estate investment trust in the United States. It engages in the ownership, operation, management, acquisition, development, and redevelopment of apartment communities, as well as commercial properties. The stock currently has a dividend yield of 2.9%. ESS has a PE ratio of 51.0. Currently there are 8 analysts that rate Essex Property a buy, no analysts rate it a sell, and 6 rate it a hold. The average volume for Essex Property has been 458,300 shares per day over the past 30 days. Essex Property has a market cap of $6.6 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.94 and a short float of 8.5% with 1.29 days to cover. Shares are up 18.5% year-to-date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Essex Property as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 65.89% to $79.90 million when compared to the same quarter last year. In addition, ESSEX PROPERTY TRUST has also vastly surpassed the industry average cash flow growth rate of 10.91%.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.
- ESS, with its decline in revenue, underperformed when compared the industry average of 6.9%. Since the same quarter one year prior, revenues slightly dropped by 8.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing 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. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, ESSEX PROPERTY TRUST's return on equity is below that of both the industry average and the S&P 500.
- ESSEX PROPERTY TRUST has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ESSEX PROPERTY TRUST increased its bottom line by earning $3.25 versus $3.09 in the prior year. For the next year, the market is expecting a contraction of 13.2% in earnings ($2.82 versus $3.25).
- You can view the full Essex Property Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.