Trade-Ideas: SL Green Realty (SLG) Is Today's

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 SL Green Realty ( SLG) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified SL Green Realty as such a stock due to the following factors:

  • SLG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $67.0 million.
  • SLG has traded 343,292 shares today.
  • SLG traded in a range 218.6% of the normal price range with a price range of $2.30.
  • SLG traded below its daily resistance level (quality: 128 days, meaning that the stock is crossing a resistance level set by the last 128 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on SLG:

SL Green Realty Corp. is a real estate investment trust (REIT). The firm engages in the property management, acquisitions, financing, development, construction, and leasing. It also provides tenant services to its clients. The firm invests in real estate markets of the United States. The stock currently has a dividend yield of 1.9%. SLG has a PE ratio of 46.3. Currently there are 4 analysts that rate SL Green Realty a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for SL Green Realty has been 573,500 shares per day over the past 30 days. SL Green has a market cap of $10.3 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.46 and a short float of 6.5% with 8.91 days to cover. Shares are up 17.2% 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 SL Green Realty as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, 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:
  • SLG's revenue growth has slightly outpaced the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 13.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The strong earnings growth this company has enjoyed -- up -- has apparently played a role in driving up its share price by a solid 25.80%. In addition, the rise in the general market has likely contributed to this stock's strong performance during this past year.Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • 36.33% is the gross profit margin for SL GREEN REALTY CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 60.50% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 69.79% to $188.41 million when compared to the same quarter last year. In addition, SL GREEN REALTY CORP has also vastly surpassed the industry average cash flow 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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