Trade-Ideas LLC identified American Homes 4 Rent ( AMH) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified American Homes 4 Rent as such a stock due to the following factors:

  • AMH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $78.0 million.
  • AMH has traded 22,078 shares today.
  • AMH is trading at a new lifetime high.

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More details on AMH:

American Homes 4 Rent is a real estate investment trust. The firm engages in the acquisition, renovation, leasing, and operating single-family home rental properties in the United States. American Homes 4 Rent was founded in 2012 and is based in Malibu, California. The stock currently has a dividend yield of 1%. Currently there are 3 analysts that rate American Homes 4 Rent a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for American Homes 4 Rent has been 2.1 million shares per day over the past 30 days. American Homes 4 Rent has a market cap of $4.9 billion and is part of the financial sector and real estate industry. Shares are up 23.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates American Homes 4 Rent as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from the ratings report include:
  • The gross profit margin for AMERICAN HOMES 4 RENT is rather low; currently it is at 20.20%. Regardless of AMH's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AMH's net profit margin of 0.61% is significantly lower than the industry average.
  • 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. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, AMERICAN HOMES 4 RENT's return on equity significantly trails that of both the industry average and the S&P 500.
  • AMERICAN HOMES 4 RENT reported significant earnings per share improvement 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, AMERICAN HOMES 4 RENT reported poor results of -$0.40 versus -$0.34 in the prior year. This year, the market expects an improvement in earnings (-$0.22 versus -$0.40).
  • 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 109.8% when compared to the same quarter one year prior, rising from -$12.22 million to $1.19 million.
  • This stock has increased by 27.68% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in AMH do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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