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

  • MAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $70.6 million.
  • MAC is making at least a new 3-day high.
  • MAC has a PE ratio of 136.1.
  • MAC is mentioned 1.06 times per day on StockTwits.
  • MAC has not yet been mentioned on StockTwits today.
  • MAC is currently in the upper 20% of its 1-year range.
  • MAC is in the upper 35% of its 20-day range.
  • MAC is in the upper 45% of its 5-day range.
  • MAC 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 MAC:

The Macerich Company is an independent real estate investment trust. The firm invests in the real estate markets of the United States. The stock currently has a dividend yield of 3.8%. MAC has a PE ratio of 136.1. Currently there are 6 analysts that rate Macerich a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Macerich has been 897,100 shares per day over the past 30 days. Macerich has a market cap of $9.6 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.99 and a short float of 3% with 3.79 days to cover. Shares are up 16.4% 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 Macerich as a hold. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • MAC, with its decline in revenue, underperformed when compared the industry average of 13.8%. Since the same quarter one year prior, revenues slightly dropped by 4.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • MACERICH CO's earnings per share declined by 24.2% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, MACERICH CO reported lower earnings of $0.98 versus $2.07 in the prior year. For the next year, the market is expecting a contraction of 5.1% in earnings ($0.93 versus $0.98).
  • The gross profit margin for MACERICH CO is currently lower than what is desirable, coming in at 27.43%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 12.90% significantly trails the industry average.
  • Net operating cash flow has decreased to $106.33 million or 27.20% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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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