Strong And Under The Radar: National Retail Properties (NNN)

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 National Retail Properties ( NNN) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified National Retail Properties as such a stock due to the following factors:

  • NNN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.7 million.
  • NNN is making at least a new 3-day high.
  • NNN has a PE ratio of 33.3.
  • NNN is mentioned 0.60 times per day on StockTwits.
  • NNN has not yet been mentioned on StockTwits today.
  • NNN is currently in the upper 20% of its 1-year range.
  • NNN is in the upper 35% of its 20-day range.
  • NNN is in the upper 45% of its 5-day range.
  • NNN 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 NNN:

National Retail Properties, Inc. is a publicly owned equity real estate investment trust. The firm acquires, owns, manages, and develops retail properties in the United States. The stock currently has a dividend yield of 4.3%. NNN has a PE ratio of 33.3. Currently there are 6 analysts that rate National Retail Properties a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for National Retail Properties has been 1.3 million shares per day over the past 30 days. National Retail has a market cap of $5.0 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.76 and a short float of 11% with 7.94 days to cover. Shares are up 30.5% 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 National Retail Properties as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, expanding profit margins 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:
  • 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 26.46% 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, NNN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • NATIONAL RETAIL PROPERTIES has improved earnings per share by 10.7% 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 year. We feel that this trend should continue. During the past fiscal year, NATIONAL RETAIL PROPERTIES increased its bottom line by earning $1.06 versus $1.03 in the prior year. This year, the market expects an improvement in earnings ($1.19 versus $1.06).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.6%. Since the same quarter one year prior, revenues slightly increased by 8.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for NATIONAL RETAIL PROPERTIES is rather high; currently it is at 60.47%. Regardless of NNN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NNN's net profit margin of 43.60% significantly outperformed against the industry.
  • Net operating cash flow has slightly increased to $94.73 million or 4.22% when compared to the same quarter last year. Despite an increase in cash flow, NATIONAL RETAIL PROPERTIES's average is still marginally south of the industry average growth rate of 6.46%.

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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