LaSalle Hotel Properties (LHO) Showing Signs Of Being Strong And Under The Radar

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 LaSalle Hotel Properties ( LHO) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified LaSalle Hotel Properties as such a stock due to the following factors:

  • LHO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.0 million.
  • LHO is making at least a new 3-day high.
  • LHO has a PE ratio of 31.0.
  • LHO is mentioned 1.00 times per day on StockTwits.
  • LHO has not yet been mentioned on StockTwits today.
  • LHO is currently in the upper 20% of its 1-year range.
  • LHO is in the upper 35% of its 20-day range.
  • LHO is in the upper 45% of its 5-day range.
  • LHO 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 LHO:

LaSalle Hotel Properties, a real estate investment trust (REIT), engages in the purchase, ownership, redevelopment, and leasing of primarily upscale and luxury full-service hotels in convention, resort, and urban business markets in the United States. The stock currently has a dividend yield of 4.1%. LHO has a PE ratio of 31.0. Currently there are 5 analysts that rate LaSalle Hotel Properties a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for LaSalle Hotel Properties has been 928,700 shares per day over the past 30 days. LaSalle Hotel has a market cap of $3.8 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.52 and a short float of 3.9% with 8.66 days to cover. Shares are up 17.4% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates LaSalle Hotel Properties as a buy. The company's strengths can be seen in multiple areas, such as its robust 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:

  • LHO's revenue growth has slightly outpaced the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 17.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 121.62% and other important driving factors, this stock has surged by 37.55% 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, LHO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • LASALLE HOTEL PROPERTIES 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, LASALLE HOTEL PROPERTIES increased its bottom line by earning $0.73 versus $0.52 in the prior year. This year, the market expects an improvement in earnings ($1.36 versus $0.73).
  • 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 121.9% when compared to the same quarter one year prior, rising from $40.86 million to $90.69 million.

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