Trade-Ideas LLC identified CoreSite Realty ( COR) 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 CoreSite Realty as such a stock due to the following factors:

  • COR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.1 million.
  • COR has traded 544,206 shares today.
  • COR traded in a range 200.3% of the normal price range with a price range of $5.04.
  • COR traded above its daily resistance level (quality: 5 days, meaning that the stock is crossing a resistance level set by the last 5 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 COR:

CoreSite Realty Corporation engages in the ownership, acquisition, construction, and management of data centers. The stock currently has a dividend yield of 3.7%. COR has a PE ratio of 63. Currently there are 5 analysts that rate CoreSite Realty a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for CoreSite Realty has been 353,100 shares per day over the past 30 days. CoreSite has a market cap of $1.5 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.49 and a short float of 5.2% with 2.07 days to cover. Shares are up 1.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

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

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.2%. Since the same quarter one year prior, revenues rose by 22.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CORESITE REALTY CORP 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. During the past fiscal year, CORESITE REALTY CORP increased its bottom line by earning $0.66 versus $0.50 in the prior year. This year, the market expects an improvement in earnings ($1.00 versus $0.66).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 72.1% when compared to the same quarter one year prior, rising from $5.23 million to $9.00 million.
  • Net operating cash flow has significantly increased by 112.66% to $42.62 million when compared to the same quarter last year. In addition, CORESITE REALTY CORP has also vastly surpassed the industry average cash flow growth rate of -50.14%.
  • Powered by its strong earnings growth of 85.71% and other important driving factors, this stock has surged by 42.42% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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