Alexandria Real Estate Equities (ARE) 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 Alexandria Real Estate Equities ( ARE) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Alexandria Real Estate Equities as such a stock due to the following factors:

  • ARE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.6 million.
  • ARE is making at least a new 3-day high.
  • ARE has a PE ratio of 49.5.
  • ARE is mentioned 1.06 times per day on StockTwits.
  • ARE has not yet been mentioned on StockTwits today.
  • ARE is currently in the upper 20% of its 1-year range.
  • ARE is in the upper 35% of its 20-day range.
  • ARE is in the upper 45% of its 5-day range.
  • ARE 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 ARE:

Alexandria Real Estate Equities, Inc., a real estate investment trust (REIT), engages in the ownership, operation, management, development, acquisition, and redevelopment of properties for the life sciences industry. The stock currently has a dividend yield of 3.4%. ARE has a PE ratio of 49.5. Currently there are 3 analysts that rate Alexandria Real Estate Equities a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Alexandria Real Estate Equities has been 489,700 shares per day over the past 30 days. Alexandria Real Estate Equities has a market cap of $6.3 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 3.7% with 5.10 days to cover. Shares are up 41% 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 Alexandria Real Estate Equities as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • ARE's revenue growth has slightly outpaced the industry average of 13.8%. Since the same quarter one year prior, revenues rose by 17.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 41.39% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ARE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ALEXANDRIA R E EQUITIES INC has improved earnings per share by 8.3% 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, ALEXANDRIA R E EQUITIES INC increased its bottom line by earning $1.60 versus $0.95 in the prior year. This year, the market expects an improvement in earnings ($1.64 versus $1.60).
  • Net operating cash flow has increased to $110.63 million or 18.57% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 6.64%.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 9.9% when compared to the same quarter one year prior, going from $31.49 million to $34.60 million.

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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