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

  • SUI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.2 million.
  • SUI has traded 17.895499999999998408384271897375583648681640625 options contracts today.
  • SUI is making at least a new 3-day high.
  • SUI has a PE ratio of 118.
  • SUI is mentioned 0.97 times per day on StockTwits.
  • SUI has not yet been mentioned on StockTwits today.
  • SUI is currently in the upper 20% of its 1-year range.
  • SUI is in the upper 35% of its 20-day range.
  • SUI is in the upper 45% of its 5-day range.
  • SUI 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 SUI:

Sun Communities, Inc. operates as a real estate investment trust (REIT). It owns, operates, and develops manufactured housing communities in the midwestern, southern, and southeastern United States. The stock currently has a dividend yield of 3.9%. SUI has a PE ratio of 118. Currently there is 1 analyst that rates Sun Communities a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Sun Communities has been 287,900 shares per day over the past 30 days. Sun has a market cap of $3.6 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.36 and a short float of 4.8% with 4.92 days to cover. Shares are up 10.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sun Communities as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 9.7%. Since the same quarter one year prior, revenues rose by 45.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SUN COMMUNITIES 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, SUN COMMUNITIES INC increased its bottom line by earning $0.59 versus $0.32 in the prior year. This year, the market expects an improvement in earnings ($0.93 versus $0.59).
  • Powered by its strong earnings growth of 91.66% and other important driving factors, this stock has surged by 27.64% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • The gross profit margin for SUN COMMUNITIES INC is currently lower than what is desirable, coming in at 28.20%. Regardless of SUI's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SUI's net profit margin of 9.44% is significantly lower than the industry average.
  • 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, SUN COMMUNITIES INC's return on equity significantly trails that of both the industry average and the S&P 500.

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