Trade-Ideas: Mid-America Apartment Communities (MAA) Is Today's Strong And Under The Radar Stock

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 Mid-America Apartment Communities ( MAA) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Mid-America Apartment Communities as such a stock due to the following factors:

  • MAA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.7 million.
  • MAA is making at least a new 3-day high.
  • MAA has a PE ratio of 75.4.
  • MAA is mentioned 0.32 times per day on StockTwits.
  • MAA has not yet been mentioned on StockTwits today.
  • MAA is currently in the upper 20% of its 1-year range.
  • MAA is in the upper 35% of its 20-day range.
  • MAA is in the upper 45% of its 5-day range.
  • MAA 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 MAA:

Mid-America Apartment Communities, Inc. is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It is engaged in acquisition, redevelopment, new development, property management, and disposition of multifamily apartment communities. The stock currently has a dividend yield of 4.1%. MAA has a PE ratio of 75.4. Currently there are 5 analysts that rate Mid-America Apartment Communities a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Mid-America Apartment Communities has been 443,400 shares per day over the past 30 days. Mid-America Apartment has a market cap of $5.4 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.49 and a short float of 2.2% with 3.53 days to cover. Shares are up 18.2% 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 Mid-America Apartment Communities as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • MAA's very impressive revenue growth greatly exceeded the industry average of 13.8%. Since the same quarter one year prior, revenues leaped by 86.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • MID-AMERICA APT CMNTYS INC reported significant earnings per share improvement 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, MID-AMERICA APT CMNTYS INC reported lower earnings of $0.99 versus $1.42 in the prior year. This year, the market expects an improvement in earnings ($1.95 versus $0.99).
  • The gross profit margin for MID-AMERICA APT CMNTYS INC is currently lower than what is desirable, coming in at 26.66%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 26.57% is above that of the industry average.
  • 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, MID-AMERICA APT CMNTYS 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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