Today's Strong And Under The Radar Stock Is Extra Space Storage (EXR)

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

  • EXR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.3 million.
  • EXR is making at least a new 3-day high.
  • EXR has a PE ratio of 33.2.
  • EXR is mentioned 0.84 times per day on StockTwits.
  • EXR has not yet been mentioned on StockTwits today.
  • EXR is currently in the upper 20% of its 1-year range.
  • EXR is in the upper 35% of its 20-day range.
  • EXR is in the upper 45% of its 5-day range.
  • EXR 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 EXR:

Extra Space Storage, Inc. operates as a real estate investment trust (REIT) in the United States. It engages in property management and development activities that include acquiring, managing, developing, and selling, as well as the rental of self-storage facilities. The stock currently has a dividend yield of 3.5%. EXR has a PE ratio of 33.2. Currently there are 4 analysts that rate Extra Space Storage a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Extra Space Storage has been 685,000 shares per day over the past 30 days. Extra Space has a market cap of $6.2 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 2.7% with 5.63 days to cover. Shares are up 27.5% 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 Extra Space Storage as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, compelling growth in net income, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 28.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 27.46% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, EXR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 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 20.9% when compared to the same quarter one year prior, going from $34.47 million to $41.67 million.
  • Net operating cash flow has increased to $103.19 million or 36.78% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.20%.
  • 46.74% is the gross profit margin for EXTRA SPACE STORAGE INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 24.77% 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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