Strong And Under The Radar Today: UDR (UDR)

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

  • UDR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $67.6 million.
  • UDR is making at least a new 3-day high.
  • UDR has a PE ratio of 39.8.
  • UDR is mentioned 1.71 times per day on StockTwits.
  • UDR has not yet been mentioned on StockTwits today.
  • UDR is currently in the upper 20% of its 1-year range.
  • UDR is in the upper 35% of its 20-day range.
  • UDR is in the upper 45% of its 5-day range.
  • UDR 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 UDR:

UDR, Inc. is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It owns, operates, acquires, renovates, develops, redevelops, and manages multifamily apartment communities. The stock currently has a dividend yield of 3.4%. UDR has a PE ratio of 39.8. Currently there are 5 analysts that rate UDR a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for UDR has been 1.8 million shares per day over the past 30 days. UDR has a market cap of $8.4 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.13 and a short float of 5.3% with 3.63 days to cover. Shares are up 4.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates UDR as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, compelling growth in net income, expanding profit margins and impressive record of earnings per share growth. 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:
  • The revenue growth greatly exceeded the industry average of 9.8%. Since the same quarter one year prior, revenues rose by 42.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 300.00% and other important driving factors, this stock has surged by 26.72% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 302.1% when compared to the same quarter one year prior, rising from $18.36 million to $73.82 million.
  • 38.46% is the gross profit margin for UDR INC which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 26.43% trails the industry average.
  • UDR INC reported significant earnings per share improvement 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, UDR INC turned its bottom line around by earning $0.60 versus -$0.01 in the prior year. For the next year, the market is expecting a contraction of 70.0% in earnings ($0.18 versus $0.60).

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