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 Kite Realty Group ( KRG) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Kite Realty Group as such a stock due to the following factors:
- KRG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.4 million.
- KRG has traded 1.3 million shares today.
- KRG traded in a range above the normal price range.
- KRG traded above its daily resistance level (quality: 13 days, meaning that the stock is crossing a resistance level set by the last 13 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher. EXCLUSIVE OFFER: Get the inside scoop on opportunities in KRG with the Ticky from Trade-Ideas. See the FREE profile for KRG NOW at Trade-Ideas More details on KRG: Kite Realty Group Trust is a publicly owned real estate investment trust. The firm invests in real estate markets of the United States. The stock currently has a dividend yield of 4.2%. Currently there are 4 analysts that rate Kite Realty Group a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for Kite Realty Group has been 4.8 million shares per day over the past 30 days. Kite Realty Group has a market cap of $806.3 million and is part of the financial sector and real estate industry. The stock has a beta of 1.01 and a short float of 3.4% with 0.92 days to cover. Shares are down 3.0% year-to-date as of the close of trading on Monday. 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 Kite Realty Group as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.5%. Since the same quarter one year prior, revenues rose by 36.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- KITE REALTY GROUP TRUST 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 year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, KITE REALTY GROUP TRUST continued to lose money by earning -$0.09 versus -$0.26 in the prior year. This year, the market expects an improvement in earnings ($0.11 versus -$0.09).
- 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. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- 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, KITE REALTY GROUP TRUST's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for KITE REALTY GROUP TRUST is rather low; currently it is at 18.65%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, KRG's net profit margin of -7.28% significantly underperformed when compared to the industry average.
- You can view the full Kite Realty Group 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.