Strong On High Volume: Sabra Health Care REIT (SBRA)

Trade-Ideas LLC identified Sabra Health Care REIT ( SBRA) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Sabra Health Care REIT as such a stock due to the following factors:

  • SBRA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.6 million.
  • SBRA has traded 59,513 shares today.
  • SBRA is trading at 3.30 times the normal volume for the stock at this time of day.
  • SBRA is trading at a new high 4.05% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. 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. 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in SBRA with the Ticky from Trade-Ideas. See the FREE profile for SBRA NOW at Trade-Ideas More details on SBRA: Sabra Health Care REIT, Inc. operates as a real estate investment trust in the United States. The company, through its subsidiaries, owns and invests in real estate properties for the healthcare industry. The stock currently has a dividend yield of 7.8%. SBRA has a PE ratio of 19. Currently there are 4 analysts that rate Sabra Health Care REIT a buy, 1 analyst rates it a sell, and 6 rate it a hold. The average volume for Sabra Health Care REIT has been 531,500 shares per day over the past 30 days. Sabra Health Care REIT has a market cap of $1.4 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.71 and a short float of 3.1% with 3.14 days to cover. Shares are up 5% year-to-date as of the close of trading on Monday. 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 Sabra Health Care REIT as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 19.9%. 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 gross profit margin for SABRA HEALTH CARE REIT INC is currently very high, coming in at 72.85%. Regardless of SBRA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 37.54% trails the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, SABRA HEALTH CARE REIT INC's return on equity is below that of both the industry average and the S&P 500.
  • Looking at the price performance of SBRA's shares over the past 12 months, there is not much good news to report: the stock is down 32.05%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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