Strong And Under The Radar Today: 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 strong and under the radar 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 $134.8 million.
  • AVB is making at least a new 3-day high.
  • AVB has a PE ratio of 40.4.
  • AVB is mentioned 1.39 times per day on StockTwits.
  • AVB has not yet been mentioned on StockTwits today.
  • AVB is currently in the upper 20% of its 1-year range.
  • AVB is in the upper 35% of its 20-day range.
  • AVB is in the upper 45% of its 5-day range.
  • AVB 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 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 40.4. Currently there are 8 analysts that rate AvalonBay Communities a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for AvalonBay Communities has been 917,800 shares per day over the past 30 days. AvalonBay has a market cap of $20.1 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.71 and a short float of 5% with 6.53 days to cover. Shares are up 31.8% year-to-date as of the close of trading on Friday.

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 12.2%. 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. The firm also exceeded the industry average cash flow growth rate of -24.40%.

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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