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.

Trade-Ideas LLC identified Starwood Property ( STWD) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Starwood Property as such a stock due to the following factors:

  • STWD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.7 million.
  • STWD traded 269,350 shares today in the pre-market hours as of 8:06 AM, representing 12.1% of its average daily volume.

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More details on STWD:

Starwood Property Trust, Inc. originates, acquires, finances, and manages commercial mortgage loans, other commercial real estate debt investments, commercial mortgage-backed securities, and other commercial real estate-related debt investments in the United States and Europe. The stock currently has a dividend yield of 7.8%. STWD has a PE ratio of 10.9. Currently there are 5 analysts that rate Starwood Property a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Starwood Property has been 2.0 million shares per day over the past 30 days. Starwood Property has a market cap of $5.5 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.54 and a short float of 7.7% with 7.63 days to cover. Shares are up 5.5% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Starwood Property as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.0%. Since the same quarter one year prior, revenues slightly increased by 1.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for STARWOOD PROPERTY TRUST INC is rather high; currently it is at 56.21%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 49.38% significantly outperformed against the industry average.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, STARWOOD PROPERTY TRUST INC's return on equity is below that of both the industry average and the S&P 500.

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