Strong And Under The Radar Today: American Assets (AAT)

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

  • AAT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.8 million.
  • AAT is making at least a new 3-day high.
  • AAT has a PE ratio of 83.5.
  • AAT is mentioned 0.32 times per day on StockTwits.
  • AAT has not yet been mentioned on StockTwits today.
  • AAT is currently in the upper 20% of its 1-year range.
  • AAT is in the upper 35% of its 20-day range.
  • AAT is in the upper 45% of its 5-day range.
  • AAT 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 AAT:

American Assets Trust, Inc. operates as a real estate investment trust in the United States. The company owns, operates, acquires, and develops retail, office, multifamily, and mixed-use properties primarily in southern California, northern California, and Hawaii. The stock currently has a dividend yield of 2.5%. AAT has a PE ratio of 83.5. Currently there are 3 analysts that rate American Assets a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for American Assets has been 157,000 shares per day over the past 30 days. American Assets 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 0.90 and a short float of 2.8% with 5.22 days to cover. Shares are up 12% 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 American Assets as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels and good cash flow from operations. 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 net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Real Estate Investment Trusts (REITs) industry average. The net income increased by 18.6% when compared to the same quarter one year prior, going from $3.21 million to $3.81 million.
  • Net operating cash flow has increased to $22.34 million or 11.69% when compared to the same quarter last year. Despite an increase in cash flow, AMERICAN ASSETS TRUST INC's average is still marginally south of the industry average growth rate of 17.20%.
  • 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 on the basis of return on equity, AMERICAN ASSETS TRUST INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for AMERICAN ASSETS TRUST INC is currently lower than what is desirable, coming in at 28.54%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.11% significantly trails the industry average.

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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