Trade-Ideas LLC identified Public Storage ( PSA) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Public Storage as such a stock due to the following factors:

  • PSA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $182.7 million.
  • PSA has a PE ratio of 41.
  • PSA is currently in the upper 30% of its 1-year range.
  • PSA is in the upper 25% of its 20-day range.
  • PSA is in the upper 35% of its 5-day range.
  • PSA is currently trading above yesterday's high.
  • PSA has experienced a gap between today's open and yesterday's close of 1.6%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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More details on PSA:

Public Storage is an equity real estate investment trust. It engages in the acquisition, development, ownership, and operation of self-storage facilities in the United States and Europe. The stock currently has a dividend yield of 2.7%. PSA has a PE ratio of 41. Currently there are 3 analysts that rate Public Storage a buy, 1 analyst rates it a sell, and 13 rate it a hold.

The average volume for Public Storage has been 852,700 shares per day over the past 30 days. Public has a market cap of $43.3 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.28 and a short float of 2.1% with 3.73 days to cover. Shares are up 0.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Public Storage as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

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 28.58% 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, PSA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • PUBLIC STORAGE has improved earnings per share by 6.1% 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, PUBLIC STORAGE increased its bottom line by earning $6.07 versus $5.25 in the prior year. This year, the market expects an improvement in earnings ($6.80 versus $6.07).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry average. The net income increased by 4.8% when compared to the same quarter one year prior, going from $346.72 million to $363.49 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.0%. Since the same quarter one year prior, revenues slightly increased by 3.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for PUBLIC STORAGE is rather high; currently it is at 61.21%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 57.78% significantly outperformed against the industry average.

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