New Lifetime High Today: Home Properties (HME)

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 Home Properties ( HME) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Home Properties as such a stock due to the following factors:

  • HME has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $68.9 million.
  • HME has traded 6,397 shares today.
  • HME is trading at a new lifetime high.

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More details on HME:

Home Properties, Inc. is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It is engaged in the ownership, management, acquisition, rehabilitation and development of residential apartment communities. The stock currently has a dividend yield of 4.1%. HME has a PE ratio of 33.0. Currently there are 3 analysts that rate Home Properties a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Home Properties has been 452,200 shares per day over the past 30 days. Home has a market cap of $4.3 billion and is part of the financial sector and real estate industry. The stock has a beta of -0.05 and a short float of 3.8% with 1.49 days to cover. Shares are up 13.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Home Properties as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth, reasonable valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
  • The net income growth from the same quarter one year ago has greatly 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 25.3% when compared to the same quarter one year prior, rising from $45.79 million to $57.36 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 5.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HOME PROPERTIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. Despite the past stability of earnings, the consensus estimate anticipates a weakening in earnings. During the past fiscal year, HOME PROPERTIES INC's EPS of $1.59 remained unchanged from the prior years' EPS of $1.59. For the next year, the market is expecting a contraction of 17.6% in earnings ($1.31 versus $1.59).

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