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 "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $41.4 million.
  • ARE has traded 278,065 shares today.
  • ARE traded in a range 331.6% of the normal price range with a price range of $4.28.
  • ARE traded below its daily resistance level (quality: 3 days, meaning that the stock is crossing a resistance level set by the last 3 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in ARE with the Ticky from Trade-Ideas. See the FREE profile for ARE NOW at Trade-Ideas

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 3.2%. ARE has a PE ratio of 52.0. 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 452,200 shares per day over the past 30 days. Alexandria Real Estate Equities has a market cap of $6.7 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 2.6% with 3.61 days to cover. Shares are up 5.5% 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 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 13.7%. 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 38.77% 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 6.60%.
  • 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.

null