Trade-Ideas LLC identified Home Properties ( HME) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Home Properties as such a stock due to the following factors:

  • HME has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.3 million.
  • HME has traded 851,687 shares today.
  • HME traded in a range 245.8% of the normal price range with a price range of $0.64.
  • HME traded above its daily resistance level (quality: 3 days, meaning that the stock is crossing a resistance level set by the last 3 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on HME:

Home Properties, Inc. is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It is engaged in the ownership, management, acquisition, rehabilitation and development of residential apartment communities. The stock currently has a dividend yield of 4.1%. HME has a PE ratio of 32. Currently there are no analysts that rate Home Properties a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Home Properties has been 750,200 shares per day over the past 30 days. Home has a market cap of $4.3 billion and is part of the financial sector and real estate industry. The stock has a beta of -0.07 and a short float of 1.3% with 0.77 days to cover. Shares are up 13.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Home Properties as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, reasonable valuation levels, impressive record of earnings per share growth and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 29.18% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HME should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.7%. Since the same quarter one year prior, revenues slightly increased by 6.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • HOME PROPERTIES INC has improved earnings per share by 23.7% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, HOME PROPERTIES INC's EPS of $1.59 remained unchanged from the prior years' EPS of $1.59. This year, the market expects an improvement in earnings ($2.19 versus $1.59).
  • Net operating cash flow has slightly increased to $82.53 million or 1.24% when compared to the same quarter last year. Despite an increase in cash flow, HOME PROPERTIES INC's cash flow growth rate is still lower than the industry average growth rate of 16.13%.

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