Trade-Ideas LLC identified Public Storage ( PSA) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $158.3 million.
  • PSA has traded 305,516 shares today.
  • PSA traded in a range 238.3% of the normal price range with a price range of $9.49.
  • PSA traded below its daily resistance level (quality: 26 days, meaning that the stock is crossing a resistance level set by the last 26 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in PSA with the Ticky from Trade-Ideas. See the FREE profile for PSA NOW at Trade-Ideas

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 2.5%. PSA has a PE ratio of 45. Currently there are 2 analysts that rate Public Storage a buy, 2 analysts rate it a sell, and 12 rate it a hold.

The average volume for Public Storage has been 811,000 shares per day over the past 30 days. Public has a market cap of $47.4 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.40 and a short float of 2.4% with 4.46 days to cover. Shares are up 10.5% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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 39.08% 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 ($6.89 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.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.