New Lifetime High Today: Retail Opportunity Investments (ROIC)

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 Retail Opportunity Investments ( ROIC) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Retail Opportunity Investments as such a stock due to the following factors:

  • ROIC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.3 million.
  • ROIC has traded 9,313 shares today.
  • ROIC is trading at a new lifetime high.

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More details on ROIC:

Retail Opportunity Investments Corp., a real estate investment trust (REIT), engages in the acquisition, ownership, and management of necessity-based community and neighborhood shopping centers in the eastern and western regions of the United States. The stock currently has a dividend yield of 4%. ROIC has a PE ratio of 69.7. Currently there is 1 analyst that rates Retail Opportunity Investments a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Retail Opportunity Investments has been 487,200 shares per day over the past 30 days. Retail Opportunity Investments has a market cap of $1.5 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.44 and a short float of 10.1% with 9.89 days to cover. Shares are up 8.8% 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 Retail Opportunity Investments as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 9.1%. Since the same quarter one year prior, revenues rose by 39.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • RETAIL OPPORTUNITY INVTS CP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, RETAIL OPPORTUNITY INVTS CP increased its bottom line by earning $0.47 versus $0.15 in the prior year. For the next year, the market is expecting a contraction of 63.8% in earnings ($0.17 versus $0.47).
  • The gross profit margin for RETAIL OPPORTUNITY INVTS CP is currently lower than what is desirable, coming in at 30.10%. Regardless of ROIC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 16.51% trails the industry average.
  • 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 73.3% when compared to the same quarter one year ago, falling from $25.26 million to $6.75 million.

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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