Trade-Ideas LLC identified Macerich ( MAC) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Macerich as such a stock due to the following factors:

  • MAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $89.1 million.
  • MAC has traded 791,184 shares today.
  • MAC is trading at 1.51 times the normal volume for the stock at this time of day.
  • MAC crossed above its 200-day simple moving average.

'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on MAC:

The Macerich Company is an independent real estate investment trust. The firm invests in the real estate markets of the United States. The stock currently has a dividend yield of 3.2%. MAC has a PE ratio of 8. Currently there is 1 analyst that rates Macerich a buy, no analysts rate it a sell, and 14 rate it a hold.

The average volume for Macerich has been 992,000 shares per day over the past 30 days. Macerich has a market cap of $12.7 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.81 and a short float of 1.8% with 1.81 days to cover. Shares are down 3.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Macerich as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.8%. Since the same quarter one year prior, revenues rose by 23.7%. 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.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, MACERICH CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $110.75 million or 19.52% when compared to the same quarter last year. In addition, MACERICH CO has also modestly surpassed the industry average cash flow growth rate of 16.13%.
  • 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. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • MACERICH CO's earnings per share declined by 18.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, MACERICH CO increased its bottom line by earning $10.00 versus $0.98 in the prior year. For the next year, the market is expecting a contraction of 92.5% in earnings ($0.76 versus $10.00).

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