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

  • SUI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.2 million.
  • SUI is making at least a new 3-day high.
  • SUI has a PE ratio of 119.5.
  • SUI is mentioned 1.13 times per day on StockTwits.
  • SUI has not yet been mentioned on StockTwits today.
  • SUI is currently in the upper 20% of its 1-year range.
  • SUI is in the upper 35% of its 20-day range.
  • SUI is in the upper 45% of its 5-day range.
  • SUI 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 SUI:

Sun Communities, Inc. operates as a real estate investment trust (REIT). It owns, operates, and develops manufactured housing communities in the midwestern, southern, and southeastern United States. The stock currently has a dividend yield of 4%. SUI has a PE ratio of 119.5. Currently there is 1 analyst that rates Sun Communities a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Sun Communities has been 307,600 shares per day over the past 30 days. Sun has a market cap of $3.5 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.32 and a short float of 5.5% with 6.97 days to cover. Shares are up 8.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sun Communities as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • SUI's revenue growth has slightly outpaced the industry average of 10.1%. Since the same quarter one year prior, revenues rose by 13.3%. 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.
  • Net operating cash flow has increased to $24.06 million or 18.19% when compared to the same quarter last year. In addition, SUN COMMUNITIES INC has also modestly surpassed the industry average cash flow growth rate of 12.85%.
  • This stock has managed to rise its share value by 43.82% over the past twelve months. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, SUN COMMUNITIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for SUN COMMUNITIES INC is currently extremely low, coming in at 0.69%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -9.59% is significantly below that of the industry average.

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