Trade-Ideas: Healthcare Realty (HR) Is Today's Strong And Under The Radar Stock

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

  • HR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.9 million.
  • HR has traded 30.806000000000000937916411203332245349884033203125 options contracts today.
  • HR is making at least a new 3-day high.
  • HR has a PE ratio of 56.
  • HR is mentioned 1.45 times per day on StockTwits.
  • HR has not yet been mentioned on StockTwits today.
  • HR is currently in the upper 20% of its 1-year range.
  • HR is in the upper 35% of its 20-day range.
  • HR is in the upper 45% of its 5-day range.
  • HR 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 HR:

Healthcare Realty Trust Incorporated is an independent real estate investment trust. The firm invests in real estate markets of the United States. The stock currently has a dividend yield of 3.4%. HR has a PE ratio of 56. Currently there are 2 analysts that rate Healthcare Realty a buy, 2 analysts rate it a sell, and 6 rate it a hold.

The average volume for Healthcare Realty has been 911,500 shares per day over the past 30 days. Healthcare has a market cap of $3.7 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.23 and a short float of 8.6% with 6.58 days to cover. Shares are up 24.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Healthcare Realty as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, good cash flow from operations and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows low profit margins.

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 70.1% when compared to the same quarter one year prior, rising from $5.38 million to $9.16 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.9%. Since the same quarter one year prior, revenues slightly increased by 3.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 80.00% and other important driving factors, this stock has surged by 46.83% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • Net operating cash flow has increased to $23.59 million or 37.90% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 11.78%.
  • HEALTHCARE REALTY TRUST INC reported significant earnings per share improvement 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, HEALTHCARE REALTY TRUST INC increased its bottom line by earning $0.59 versus $0.34 in the prior year. For the next year, the market is expecting a contraction of 20.3% in earnings ($0.47 versus $0.59).

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