Trade-Ideas LLC identified Macerich ( MAC) 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 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 $61.8 million.
  • MAC has traded 272,799 shares today.
  • MAC traded in a range 210.4% of the normal price range with a price range of $2.55.
  • MAC traded below its daily resistance level (quality: 5 days, meaning that the stock is crossing a resistance level set by the last 5 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 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 3.4%. MAC has a PE ratio of 14. Currently there is 1 analyst that rates Macerich a buy, no analysts rate it a sell, and 12 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 $12.0 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 2.60 days to cover. Shares are up 0.9% 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 Macerich as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and notable return on equity. 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:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 1610.3% when compared to the same quarter one year prior, rising from $24.61 million to $420.92 million.
  • MAC, with its decline in revenue, underperformed when compared the industry average of 11.1%. Since the same quarter one year prior, revenues fell by 18.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for MACERICH CO is currently lower than what is desirable, coming in at 26.56%. 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 159.21% significantly outperformed against the industry.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, MACERICH CO's return on equity exceeds that of both the industry average and the S&P 500.
  • After a year of stock price fluctuations, the net result is that MAC's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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.

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.