Rouse Properties (RSE) Strong On High Relative Volume Today

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 Rouse Properties ( RSE) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Rouse Properties as such a stock due to the following factors:

  • RSE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.2 million.
  • RSE has traded 60,628 shares today.
  • RSE is trading at 7.35 times the normal volume for the stock at this time of day.
  • RSE is trading at a new high 3.07% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on RSE:

Rouse Properties, Inc. owns and manages regional malls in the United States. Its portfolio consists of 30 regional malls in 19 states totaling approximately 21 million square feet of retail and ancillary space. The company is based in New York, New York. Rouse Properties, Inc. The stock currently has a dividend yield of 4%. Currently there is 1 analyst that rates Rouse Properties a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Rouse Properties has been 311,900 shares per day over the past 30 days. Rouse has a market cap of $973.5 million and is part of the financial sector and real estate industry. The stock has a beta of 1.53 and a short float of 12.7% with 21.50 days to cover. Shares are down 23.6% year-to-date as of the close of trading on Monday.

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 Rouse Properties as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 298.7% when compared to the same quarter one year ago, falling from $4.12 million to -$8.18 million.
  • The gross profit margin for ROUSE PROPERTIES INC is rather low; currently it is at 15.88%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -12.04% is significantly below that of the industry average.
  • RSE has underperformed the S&P 500 Index, declining 8.30% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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, ROUSE PROPERTIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $22.34 million or 39.93% when compared to the same quarter last year. The firm also exceeded 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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