Trade-Ideas LLC identified Macerich ( MAC) 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 Macerich as such a stock due to the following factors:
- MAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $60.8 million.
- MAC has traded 360,410 shares today.
- MAC traded in a range 244.6% of the normal price range with a price range of $2.31.
- MAC traded above its daily resistance level (quality: 7 days, meaning that the stock is crossing a resistance level set by the last 7 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 MAC with the Ticky from Trade-Ideas. See the FREE profile for MAC NOW at Trade-Ideas More details on MAC: The Macerich Company is an independent real estate investment trust. The firm invests in the real estate markets of the United States. The stock currently has a dividend yield of 3.5%. MAC has a PE ratio of 25. Currently there are no analysts that rate Macerich a buy, no analysts rate it a sell, and 13 rate it a hold. The average volume for Macerich has been 1.3 million shares per day over the past 30 days. Macerich has a market cap of $11.6 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.74 and a short float of 2% with 2.53 days to cover. Shares are down 4.6% 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 Macerich as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Highlights from the ratings report include:
- Net operating cash flow has increased to $126.73 million or 22.08% when compared to the same quarter last year. In addition, MACERICH CO has also vastly surpassed the industry average cash flow growth rate of -64.29%.
- The gross profit margin for MACERICH CO is currently lower than what is desirable, coming in at 33.80%. Regardless of MAC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, MAC's net profit margin of 124.30% significantly outperformed against the industry.
- MAC, with its decline in revenue, slightly underperformed the industry average of 5.0%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The share price of MACERICH CO has not done very well: it is down 7.40% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
- MACERICH CO has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, MACERICH CO reported lower earnings of $3.10 versus $10.00 in the prior year. For the next year, the market is expecting a contraction of 72.3% in earnings ($0.86 versus $3.10).
- You can view the full Macerich Ratings Report.
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