Strong And Under The Radar Today: Empire State Realty (ESRT)

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

  • ESRT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.7 million.
  • ESRT is making at least a new 3-day high.
  • ESRT has a PE ratio of 73.
  • ESRT is mentioned 1.06 times per day on StockTwits.
  • ESRT has not yet been mentioned on StockTwits today.
  • ESRT is currently in the upper 20% of its 1-year range.
  • ESRT is in the upper 35% of its 20-day range.
  • ESRT is in the upper 45% of its 5-day range.
  • ESRT 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 ESRT with the Ticky from Trade-Ideas. See the FREE profile for ESRT NOW at Trade-Ideas

More details on ESRT:

Empire State Realty Trust, Inc., a real estate investment trust (REIT), focuses on owning, managing, operating, and acquiring office and retail properties in Manhattan and the greater New York metropolitan area. It also intends to provide construction services to tenants and other entities. The stock currently has a dividend yield of 1.9%. ESRT has a PE ratio of 73. Currently there are 4 analysts that rate Empire State Realty a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Empire State Realty has been 803,800 shares per day over the past 30 days. Empire State has a market cap of $2.0 billion and is part of the financial sector and real estate industry. Shares are up 3.2% year-to-date as of the close of trading on Thursday.

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 Empire State Realty as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.4%. Since the same quarter one year prior, revenues slightly increased by 8.3%. 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.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • EMPIRE STATE REALTY TR INC's earnings per share declined by 40.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, EMPIRE STATE REALTY TR INC reported lower earnings of $0.28 versus $0.41 in the prior year.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, EMPIRE STATE REALTY TR INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for EMPIRE STATE REALTY TR INC is rather low; currently it is at 15.64%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.22% significantly trails the industry average.

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.

More from Markets

Stocks Tumble as Trump Comments Lead to Worries Over China Trade Talks

Stocks Tumble as Trump Comments Lead to Worries Over China Trade Talks

Tiffany & Co. Sees a Strong Market in Asia

Tiffany & Co. Sees a Strong Market in Asia

Imagining the Stock Market in 10 Years

Imagining the Stock Market in 10 Years

Video: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Video: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Red Robin Slumps After Earnings Miss

Red Robin Slumps After Earnings Miss