Don't Miss Today's Strong And Under The Radar Stock: Chesapeake Lodging (CHSP)

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 Chesapeake Lodging ( CHSP) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Chesapeake Lodging as such a stock due to the following factors:

  • CHSP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.9 million.
  • CHSP is making at least a new 3-day high.
  • CHSP has a PE ratio of 33.3.
  • CHSP is mentioned 0.52 times per day on StockTwits.
  • CHSP has not yet been mentioned on StockTwits today.
  • CHSP is currently in the upper 20% of its 1-year range.
  • CHSP is in the upper 35% of its 20-day range.
  • CHSP is in the upper 45% of its 5-day range.
  • CHSP is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on CHSP:

Chesapeake Lodging Trust is a self-advised real estate investment trust organized in the state of Maryland in June 2009. The company focuses on investments primarily in upper-upscale hotels in major business and convention markets and premium select-service hotels in urban settings or unique locations in the United States. The stock currently has a dividend yield of 4%. CHSP has a PE ratio of 33.3. Currently there are 4 analysts that rate Chesapeake Lodging a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Chesapeake Lodging has been 524,400 shares per day over the past 30 days. Chesapeake has a market cap of $1.5 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.49 and a short float of 2.9% with 6.59 days to cover. Shares are up 20.4% year-to-date as of the close of trading on Wednesday.

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 Chesapeake Lodging 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 reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • CHSP's revenue growth has slightly outpaced the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 11.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 26.66% and other important driving factors, this stock has surged by 34.99% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CHSP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CHESAPEAKE LODGING TRUST has improved earnings per share by 26.7% 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, CHESAPEAKE LODGING TRUST increased its bottom line by earning $0.72 versus $0.65 in the prior year. This year, the market expects an improvement in earnings ($0.90 versus $0.72).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 24.6% when compared to the same quarter one year prior, going from $17.06 million to $21.25 million.

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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