Trade-Ideas LLC identified Medical Properties ( MPW) 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 Medical Properties as such a stock due to the following factors:
- MPW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.5 million.
- MPW has traded 491,196 shares today.
- MPW traded in a range 211.1% of the normal price range with a price range of $0.61.
- MPW traded above its daily resistance level (quality: 369 days, meaning that the stock is crossing a resistance level set by the last 369 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in MPW with the Ticky from Trade-Ideas. See the FREE profile for MPW NOW at Trade-Ideas More details on MPW: Medical Properties Trust, Inc. operates as a real estate investment trust (REIT) in the United States. It acquires, develops, and invests in healthcare facilities; and leases healthcare facilities to healthcare operating companies and healthcare providers. The stock currently has a dividend yield of 6.5%. MPW has a PE ratio of 22. Currently there is 1 analyst that rates Medical Properties a buy, 1 analyst rates it a sell, and 5 rate it a hold. The average volume for Medical Properties has been 1.7 million shares per day over the past 30 days. Medical has a market cap of $3.2 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.88 and a short float of 6.2% with 6.42 days to cover. Shares are up 17.9% year-to-date as of the close of trading on Tuesday. 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 Medical Properties as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. 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:
- MPW's very impressive revenue growth greatly exceeded the industry average of 5.0%. Since the same quarter one year prior, revenues leaped by 59.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MEDICAL PROPERTIES TRUST 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. This trend suggests that the performance of the business is improving. During the past fiscal year, MEDICAL PROPERTIES TRUST increased its bottom line by earning $0.62 versus $0.28 in the prior year. This year, the market expects an improvement in earnings ($1.03 versus $0.62).
- 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, MEDICAL PROPERTIES TRUST's return on equity is below that of both the industry average and the S&P 500.
- MPW has underperformed the S&P 500 Index, declining 7.02% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- You can view the full Medical Properties Ratings Report.
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