Don't Miss Today's Strong And Under The Radar Stock: AmReit (AMRE)

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

  • AMRE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.8 million.
  • AMRE is making at least a new 3-day high.
  • AMRE has a PE ratio of 115.3.
  • AMRE is mentioned 0.83 times per day on StockTwits.
  • AMRE has not yet been mentioned on StockTwits today.
  • AMRE is currently in the upper 20% of its 1-year range.
  • AMRE is in the upper 35% of its 20-day range.
  • AMRE is in the upper 45% of its 5-day range.
  • AMRE 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 AMRE:

AmREIT, Inc. operates as a real estate investment trust (REIT) in the United States. It provides development, acquisitions, brokerage, leasing, construction, general contracting, asset, and property management services. The stock currently has a dividend yield of 3%. AMRE has a PE ratio of 115.3. Currently there are 2 analysts that rate AmReit a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for AmReit has been 123,400 shares per day over the past 30 days. AmReit has a market cap of $522.2 million and is part of the financial sector and real estate industry. The stock has a beta of 0.06 and a short float of 2.9% with 1.46 days to cover. Shares are up 57.9% 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 AmReit as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • AMRE's revenue growth has slightly outpaced the industry average of 13.8%. Since the same quarter one year prior, revenues rose by 18.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 56.42% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • AMREIT INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, AMREIT INC increased its bottom line by earning $0.70 versus $0.17 in the prior year. For the next year, the market is expecting a contraction of 57.1% in earnings ($0.30 versus $0.70).
  • 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 30.3% when compared to the same quarter one year ago, falling from $1.27 million to $0.88 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, AMREIT INC underperformed against that of the industry average and is significantly less than that of the S&P 500.

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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