Washington REIT (WRE) Showing Signs Of Being Strong And Under The Radar

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

  • WRE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.1 million.
  • WRE has traded 19.417899999999999494093572138808667659759521484375 options contracts today.
  • WRE is making at least a new 3-day high.
  • WRE has a PE ratio of 33.
  • WRE is mentioned 0.42 times per day on StockTwits.
  • WRE has not yet been mentioned on StockTwits today.
  • WRE is currently in the upper 20% of its 1-year range.
  • WRE is in the upper 35% of its 20-day range.
  • WRE is in the upper 45% of its 5-day range.
  • WRE 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 WRE:

Washington Real Estate Investment Trust is an equity real estate investment trust (REIT). The company engages in the ownership, operation, and development of real properties. The firm invests in real estate markets of the greater Washington D.C. metro region. The stock currently has a dividend yield of 4%. WRE has a PE ratio of 33. Currently there are 2 analysts that rate Washington REIT a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Washington REIT has been 488,400 shares per day over the past 30 days. Washington REIT has a market cap of $2.0 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.84 and a short float of 5.7% with 5.48 days to cover. Shares are up 10.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Washington REIT as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins.

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 2.8%. 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.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • Net operating cash flow has decreased to $31.47 million or 11.85% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 91.9% when compared to the same quarter one year ago, falling from $29.51 million to $2.38 million.

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