Trade-Ideas: Douglas Emmett (DEI) Is Today's New Lifetime High Stock

Trade-Ideas LLC identified Douglas Emmett ( DEI) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Douglas Emmett as such a stock due to the following factors:

  • DEI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.0 million.
  • DEI has traded 9,125 shares today.
  • DEI is trading at a new lifetime high.

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More details on DEI:

Douglas Emmett, Inc., a real estate investment trust, owns and operates office and multifamily properties in California and Hawaii. As of December 31, 2007, the company's office portfolio consisted of 48 properties and multifamily portfolio consisted of 9 properties. The stock currently has a dividend yield of 2.6%. DEI has a PE ratio of 89. Currently there are 6 analysts that rate Douglas Emmett a buy, 2 analysts rate it a sell, and 2 rate it a hold.

The average volume for Douglas Emmett has been 1.0 million shares per day over the past 30 days. Douglas Emmett has a market cap of $5.1 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.75 and a short float of 2.4% with 3.66 days to cover. Shares are up 10.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Douglas Emmett as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 12.0%. Since the same quarter one year prior, revenues slightly increased by 4.5%. 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.
  • Net operating cash flow has increased to $89.84 million or 23.19% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 11.76%.
  • DOUGLAS EMMETT INC's earnings per share declined by 16.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DOUGLAS EMMETT INC increased its bottom line by earning $0.39 versus $0.30 in the prior year. This year, the market expects an improvement in earnings ($0.41 versus $0.39).
  • 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. In comparison to the other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, DOUGLAS EMMETT INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Real Estate Investment Trusts (REITs) industry average. The net income has decreased by 17.8% when compared to the same quarter one year ago, dropping from $18.70 million to $15.37 million.

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