Strong And Under The Radar Today: CubeSmart (CUBE)

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

  • CUBE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.8 million.
  • CUBE is making at least a new 3-day high.
  • CUBE has a PE ratio of 156.2.
  • CUBE is mentioned 0.87 times per day on StockTwits.
  • CUBE has not yet been mentioned on StockTwits today.
  • CUBE is currently in the upper 20% of its 1-year range.
  • CUBE is in the upper 35% of its 20-day range.
  • CUBE is in the upper 45% of its 5-day range.
  • CUBE 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 CUBE:

CubeSmart is a self-administered and self-managed real estate company focused on the ownership, operation, acquisition and development of self-storage facilities in the United States. The stock currently has a dividend yield of 2.8%. CUBE has a PE ratio of 156.2. Currently there are 4 analysts that rate CubeSmart a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for CubeSmart has been 866,400 shares per day over the past 30 days. CubeSmart has a market cap of $2.8 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.09 and a short float of 5.1% with 6.50 days to cover. Shares are up 17.7% year-to-date as of the close of trading on Thursday.

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 CubeSmart as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year 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:
  • CUBE's revenue growth has slightly outpaced the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 15.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • This stock has managed to rise its share value by 9.69% over the past twelve months. 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.
  • Net operating cash flow has slightly increased to $41.00 million or 5.52% when compared to the same quarter last year. Despite an increase in cash flow, CUBESMART's cash flow growth rate is still lower than 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, CUBESMART underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for CUBESMART is rather low; currently it is at 22.36%. Regardless of CUBE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CUBE's net profit margin of 8.70% is significantly lower than 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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