Strong And Under The Radar Today: Sovran Self Storage (SSS)

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

  • SSS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.7 million.
  • SSS is making at least a new 3-day high.
  • SSS has a PE ratio of 33.0.
  • SSS is mentioned 0.48 times per day on StockTwits.
  • SSS has not yet been mentioned on StockTwits today.
  • SSS is currently in the upper 20% of its 1-year range.
  • SSS is in the upper 35% of its 20-day range.
  • SSS is in the upper 45% of its 5-day range.
  • SSS 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 SSS:

Sovran Self Storage, Inc. operates as a real estate investment trust (REIT). It engages in the acquisition, ownership, and management of self-storage properties in the United States. The stock currently has a dividend yield of 3.2%. SSS has a PE ratio of 33.0. Currently there are 5 analysts that rate Sovran Self Storage a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Sovran Self Storage has been 179,600 shares per day over the past 30 days. Sovran Self has a market cap of $2.8 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.82 and a short float of 2.9% with 4.66 days to cover. Shares are up 28.6% 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 Sovran Self Storage as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • SSS's revenue growth has slightly outpaced the industry average of 13.8%. Since the same quarter one year prior, revenues rose by 20.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 26.22% and other important driving factors, this stock has surged by 27.11% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SSS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SOVRAN SELF STORAGE INC has improved earnings per share by 26.2% 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 two years. We feel that this trend should continue. During the past fiscal year, SOVRAN SELF STORAGE INC increased its bottom line by earning $2.24 versus $1.61 in the prior year. This year, the market expects an improvement in earnings ($2.65 versus $2.24).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 30.1% when compared to the same quarter one year prior, rising from $19.68 million to $25.59 million.
  • Net operating cash flow has increased to $47.37 million or 29.90% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 6.70%.

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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