Trade-Ideas: Colony Capital (CLNY) Is Today's Strong And Under The Radar Stock

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

  • CLNY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.2 million.
  • CLNY is making at least a new 3-day high.
  • CLNY has a PE ratio of 31.
  • CLNY is mentioned 1.55 times per day on StockTwits.
  • CLNY has not yet been mentioned on StockTwits today.
  • CLNY is currently in the upper 20% of its 1-year range.
  • CLNY is in the upper 35% of its 20-day range.
  • CLNY is in the upper 45% of its 5-day range.
  • CLNY 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CLNY with the Ticky from Trade-Ideas. See the FREE profile for CLNY NOW at Trade-Ideas

More details on CLNY:

Colony Capital, Inc., a commercial real estate and investment management company, acquires, originates, and manages a portfolio of real estate-related debt and equity investments in North America and Europe. The stock currently has a dividend yield of 5.8%. CLNY has a PE ratio of 31. Currently there are 4 analysts that rate Colony Capital a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Colony Capital has been 1.0 million shares per day over the past 30 days. Colony has a market cap of $2.8 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 6.4% with 8.51 days to cover. Shares are up 8.5% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Colony Capital as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • CLNY's very impressive revenue growth greatly exceeded the industry average of 8.4%. Since the same quarter one year prior, revenues leaped by 97.0%. 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.
  • 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, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 37.51% is the gross profit margin for COLONY CAPITAL INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, CLNY's net profit margin of 9.02% is significantly lower than the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 51.5% when compared to the same quarter one year ago, falling from $21.73 million to $10.53 million.
  • 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 on the basis of return on equity, COLONY CAPITAL INC underperformed against that of the industry average and is significantly less than that of the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

If you liked this article you might like

An Investment Guru's Tactics That Have Stood the Test of Time

An Investment Guru's Tactics That Have Stood the Test of Time

Litt Lights Way to 3 REIT Opportunities

Litt Lights Way to 3 REIT Opportunities

How to Find 100-to-1 Moonshots

How to Find 100-to-1 Moonshots

These 5 Dividend-Paying REITs Are Breaking Out

These 5 Dividend-Paying REITs Are Breaking Out

Mortgage Insurers Catch the Eye of EJF Capital

Mortgage Insurers Catch the Eye of EJF Capital