BioMed Realty (BMR) Showing Signs Of Being Strong And Under The Radar

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

  • BMR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.3 million.
  • BMR is making at least a new 3-day high.
  • BMR has a PE ratio of 67.3.
  • BMR is mentioned 0.58 times per day on StockTwits.
  • BMR has not yet been mentioned on StockTwits today.
  • BMR is currently in the upper 20% of its 1-year range.
  • BMR is in the upper 35% of its 20-day range.
  • BMR is in the upper 45% of its 5-day range.
  • BMR 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 BMR:

BioMed Realty Trust, Inc. operates as a real estate investment trust (REIT) that focuses on providing real estate to the life science industry in the United States. The stock currently has a dividend yield of 4.6%. BMR has a PE ratio of 67.3. Currently there are 7 analysts that rate BioMed Realty a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for BioMed Realty has been 1.6 million shares per day over the past 30 days. BioMed has a market cap of $4.3 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.85 and a short float of 4.1% with 5.91 days to cover. Shares are up 19.5% 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 BioMed Realty as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:
  • 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. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • BIOMED REALTY TRUST 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, BIOMED REALTY TRUST INC increased its bottom line by earning $0.20 versus $0.01 in the prior year. This year, the market expects an improvement in earnings ($0.29 versus $0.20).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength 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, BIOMED REALTY TRUST INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for BIOMED REALTY TRUST INC is rather low; currently it is at 21.84%. Regardless of BMR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, BMR's net profit margin of 9.40% is significantly lower than the industry average.

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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