Extra Space Storage (EXR) Showing Signs Of Being Strong And Under The Radar

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

  • EXR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.7 million.
  • EXR is making at least a new 3-day high.
  • EXR has a PE ratio of 39.3.
  • EXR is mentioned 1.29 times per day on StockTwits.
  • EXR has not yet been mentioned on StockTwits today.
  • EXR is currently in the upper 20% of its 1-year range.
  • EXR is in the upper 35% of its 20-day range.
  • EXR is in the upper 45% of its 5-day range.
  • EXR 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 EXR:

Extra Space Storage, Inc. operates as a real estate investment trust (REIT) in the United States. It engages in property management and development activities that include acquiring, managing, developing, and selling, as well as the rental of self-storage facilities. The stock currently has a dividend yield of 2.9%. EXR has a PE ratio of 39.3. Currently there are 4 analysts that rate Extra Space Storage a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Extra Space Storage has been 793,200 shares per day over the past 30 days. Extra Space has a market cap of $7.6 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.31 and a short float of 3.3% with 3.91 days to cover. Shares are up 12% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Extra Space Storage as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • EXR's revenue growth has slightly outpaced the industry average of 9.8%. Since the same quarter one year prior, revenues rose by 15.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 43.75% and other important driving factors, this stock has surged by 25.98% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, EXR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • EXTRA SPACE STORAGE INC has improved earnings per share by 43.8% 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, EXTRA SPACE STORAGE INC increased its bottom line by earning $1.54 versus $1.51 in the prior year. This year, the market expects an improvement in earnings ($1.88 versus $1.54).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 43.9% when compared to the same quarter one year prior, rising from $37.34 million to $53.74 million.
  • 45.93% is the gross profit margin for EXTRA SPACE STORAGE INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 29.73% is above that of the industry average.

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