Strong And Under The Radar: DCT Industrial (DCT)

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

  • DCT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.6 million.
  • DCT is making at least a new 3-day high.
  • DCT has a PE ratio of 221.2.
  • DCT is mentioned 0.97 times per day on StockTwits.
  • DCT has not yet been mentioned on StockTwits today.
  • DCT is currently in the upper 20% of its 1-year range.
  • DCT is in the upper 35% of its 20-day range.
  • DCT is in the upper 45% of its 5-day range.
  • DCT 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 DCT:

DCT Industrial Trust Inc. operates as a publicly owned real estate investment trust. The firm provides its services to companies. Through its fund, it engages in the ownership, operation, and development of real estate properties. The stock currently has a dividend yield of 3.2%. DCT has a PE ratio of 221.2. Currently there are 2 analysts that rate DCT Industrial a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for DCT Industrial has been 1.4 million shares per day over the past 30 days. DCT Industrial has a market cap of $3.0 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.16 and a short float of 3.4% with 1.35 days to cover. Shares are up 25.4% 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 DCT Industrial as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and good cash flow from operations. 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:
  • DCT's revenue growth has slightly outpaced the industry average of 13.6%. Since the same quarter one year prior, revenues rose by 16.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • DCT INDUSTRIAL TRUST INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. 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, DCT INDUSTRIAL TRUST INC continued to lose money by earning -$0.12 versus -$0.40 in the prior year. This year, the market expects an improvement in earnings ($0.24 versus -$0.12).
  • This stock has managed to rise its share value by 21.48% over the past twelve months. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • 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, DCT INDUSTRIAL TRUST INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for DCT INDUSTRIAL TRUST INC is rather low; currently it is at 21.41%. Regardless of DCT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, DCT's net profit margin of 14.25% 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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