Taubman Centers (TCO) Weak On High Volume Today

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 Taubman Centers ( TCO) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Taubman Centers as such a stock due to the following factors:

  • TCO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.4 million.
  • TCO has traded 81,790 shares today.
  • TCO is trading at 4.84 times the normal volume for the stock at this time of day.
  • TCO is trading at a new low 6.04% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on TCO:

Taubman Centers, Inc. operates as a real estate investment trust. As of June 30, 2005, the company owned a 63% managing general partner's interest in The Taubman Realty Group Limited Partnership (the operating partnership). The stock currently has a dividend yield of 2.7%. TCO has a PE ratio of 11.1. Currently there is 1 analyst that rates Taubman Centers a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Taubman Centers has been 391,900 shares per day over the past 30 days. Taubman Centers has a market cap of $5.1 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.77 and a short float of 1.3% with 1.48 days to cover. Shares are up 24.7% year-to-date as of the close of trading on Tuesday.

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 Taubman Centers as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, TAUBMAN CENTERS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has slightly increased to $106.66 million or 9.09% when compared to the same quarter last year. In addition, TAUBMAN CENTERS INC has also modestly surpassed the industry average cash flow growth rate of 6.64%.
  • 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. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • TAUBMAN CENTERS INC has improved earnings per share by 39.5% 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, TAUBMAN CENTERS INC increased its bottom line by earning $1.71 versus $1.36 in the prior year. This year, the market expects an improvement in earnings ($5.14 versus $1.71).
  • 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 30.4% when compared to the same quarter one year prior, rising from $30.27 million to $39.47 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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