Don't Miss Today's Strong And Under The Radar Stock: Hospitality Properties (HPT)

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 Hospitality Properties ( HPT) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Hospitality Properties as such a stock due to the following factors:

  • HPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.5 million.
  • HPT is making at least a new 3-day high.
  • HPT has a PE ratio of 34.9.
  • HPT is mentioned 0.52 times per day on StockTwits.
  • HPT has not yet been mentioned on StockTwits today.
  • HPT is currently in the upper 20% of its 1-year range.
  • HPT is in the upper 35% of its 20-day range.
  • HPT is in the upper 45% of its 5-day range.
  • HPT 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 HPT:

Hospitality Properties Trust, a real estate investment trust (REIT), engages in buying, owning, and leasing hotels. The stock currently has a dividend yield of 6.7%. HPT has a PE ratio of 34.9. Currently there are 2 analysts that rate Hospitality Properties a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Hospitality Properties has been 799,100 shares per day over the past 30 days. has a market cap of $4.4 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.53 and a short float of 2.2% with 2.86 days to cover. Shares are up 9.5% 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 Hospitality Properties as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • HPT's revenue growth has slightly outpaced the industry average of 9.1%. Since the same quarter one year prior, revenues slightly increased by 9.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry average. The net income increased by 18.9% when compared to the same quarter one year prior, going from $45.35 million to $53.92 million.
  • Net operating cash flow has slightly increased to $138.03 million or 8.94% when compared to the same quarter last year. In addition, HOSPITALITY PROPERTIES TRUST has also vastly surpassed the industry average cash flow growth rate of -64.23%.
  • HOSPITALITY PROPERTIES TRUST has improved earnings per share by 22.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HOSPITALITY PROPERTIES TRUST reported lower earnings of $0.73 versus $0.84 in the prior year. This year, the market expects an improvement in earnings ($1.06 versus $0.73).

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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