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

  • HASI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.9 million.
  • HASI is making at least a new 3-day high.
  • HASI has a PE ratio of 61.
  • HASI is mentioned 1.77 times per day on StockTwits.
  • HASI has not yet been mentioned on StockTwits today.
  • HASI is currently in the upper 20% of its 1-year range.
  • HASI is in the upper 35% of its 20-day range.
  • HASI is in the upper 45% of its 5-day range.
  • HASI 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 HASI:

Hannon Armstrong Sustainable Infrastructure Capital, Inc. provides debt and equity financing to the energy efficiency and renewable energy markets in the United States. The stock currently has a dividend yield of 5.1%. HASI has a PE ratio of 61. Currently there are 6 analysts that rate Hannon Armstrong Sustainable Infrastructure a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Hannon Armstrong Sustainable Infrastructure has been 203,500 shares per day over the past 30 days. Hannon Armstrong Sustainable Infrastructure has a market cap of $660.0 million and is part of the financial sector and real estate industry. The stock has a beta of 1.24 and a short float of 2.7% with 3.96 days to cover. Shares are up 43% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Hannon Armstrong Sustainable Infrastructure as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and poor profit margins.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Real Estate Investment Trusts (REITs) industry average. The net income has decreased by 22.9% when compared to the same quarter one year ago, dropping from $2.75 million to $2.12 million.
  • The gross profit margin for HANNON ARMSTRONG SUST INFR is rather low; currently it is at 16.97%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 15.31% significantly trails the industry average.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, HANNON ARMSTRONG SUST INFR underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Compared to its closing price of one year ago, HASI's share price has jumped by 50.15%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • HANNON ARMSTRONG SUST INFR has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HANNON ARMSTRONG SUST INFR turned its bottom line around by earning $0.46 versus -$0.69 in the prior year. This year, the market expects an improvement in earnings ($1.07 versus $0.46).

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