Today's Strong And Under The Radar Stock Is Essex Property (ESS)

Trade-Ideas LLC identified Essex Property ( ESS) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Essex Property as such a stock due to the following factors:

  • ESS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $105.2 million.
  • ESS has traded 107.239000000000004320099833421409130096435546875 options contracts today.
  • ESS is making at least a new 3-day high.
  • ESS has a PE ratio of 66.
  • ESS is mentioned 1.45 times per day on StockTwits.
  • ESS has not yet been mentioned on StockTwits today.
  • ESS is currently in the upper 20% of its 1-year range.
  • ESS is in the upper 35% of its 20-day range.
  • ESS is in the upper 45% of its 5-day range.
  • ESS is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on ESS:

Essex Property Trust, Inc. operates as a self-administered and self-managed real estate investment trust in the United States. It engages in the ownership, operation, management, acquisition, development, and redevelopment of apartment communities, as well as commercial properties. The stock currently has a dividend yield of 2.8%. ESS has a PE ratio of 66. Currently there are 10 analysts that rate Essex Property a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Essex Property has been 464,200 shares per day over the past 30 days. Essex Property has a market cap of $15.0 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.49 and a short float of 3% with 3.70 days to cover. Shares are down 3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Essex Property as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • ESS's revenue growth has slightly outpaced the industry average of 11.1%. Since the same quarter one year prior, revenues rose by 15.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 34.9% when compared to the same quarter one year prior, rising from $60.68 million to $81.84 million.
  • Net operating cash flow has increased to $200.61 million or 23.41% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -22.93%.
  • 38.95% is the gross profit margin for ESSEX PROPERTY TRUST which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ESS's net profit margin of 24.46% significantly trails the industry average.
  • ESSEX PROPERTY TRUST has improved earnings per share by 29.3% 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, ESSEX PROPERTY TRUST increased its bottom line by earning $3.49 versus $2.08 in the prior year. For the next year, the market is expecting a contraction of 3.1% in earnings ($3.38 versus $3.49).

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