New Lifetime High Reached By AvalonBay Communities (AVB)

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 AvalonBay Communities ( AVB) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified AvalonBay Communities as such a stock due to the following factors:

  • AVB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $101.9 million.
  • AVB has traded 8,288 shares today.
  • AVB is trading at a new lifetime high.

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More details on AVB:

AvalonBay Communities, Inc. engages in the development, redevelopment, acquisition, ownership, and operation of multifamily communities in the United States. The stock currently has a dividend yield of 3%. AVB has a PE ratio of 59.6. Currently there are 9 analysts that rate AvalonBay Communities a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for AvalonBay Communities has been 691,900 shares per day over the past 30 days. AvalonBay has a market cap of $20.2 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.89 and a short float of 2.8% with 4.58 days to cover. Shares are up 30.7% 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 AvalonBay Communities as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, expanding profit margins and good cash flow from operations. 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:
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over 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 336.5% when compared to the same quarter one year prior, rising from $36.22 million to $158.09 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 10.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 36.86% is the gross profit margin for AVALONBAY COMMUNITIES INC which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 37.50% significantly outperformed against the industry average.
  • Net operating cash flow has slightly increased to $189.39 million or 1.92% when compared to the same quarter last year. Despite an increase in cash flow, AVALONBAY COMMUNITIES INC's cash flow growth rate is still lower than the industry average growth rate of 17.00%.

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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