Trade-Ideas: Camden Property (CPT) Is Today's

Trade-Ideas LLC identified Camden Property ( CPT) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Camden Property as such a stock due to the following factors:

  • CPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $45.6 million.
  • CPT has traded 149,398 shares today.
  • CPT traded in a range 240.6% of the normal price range with a price range of $2.79.
  • CPT traded above its daily resistance level (quality: 3 days, meaning that the stock is crossing a resistance level set by the last 3 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on CPT:

Camden Property Trust is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It is engaged in the ownership, development, acquisition, management, and disposition of multifamily residential apartment communities. The stock currently has a dividend yield of 3.5%. CPT has a PE ratio of 44. Currently there are 7 analysts that rate Camden Property a buy, 2 analysts rate it a sell, and 6 rate it a hold.

The average volume for Camden Property has been 597,000 shares per day over the past 30 days. Camden Property has a market cap of $7.5 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.47 and a short float of 8.1% with 8.16 days to cover. Shares are up 13.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Camden Property as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 12.1%. Since the same quarter one year prior, revenues slightly increased by 8.0%. 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 $96.51 million or 26.09% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 9.08%.
  • 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The gross profit margin for CAMDEN PROPERTY TRUST is currently lower than what is desirable, coming in at 33.36%. Regardless of CPT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CPT's net profit margin of 18.87% is significantly lower than the industry average.
  • CAMDEN PROPERTY TRUST has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, CAMDEN PROPERTY TRUST reported lower earnings of $2.70 versus $3.26 in the prior year. For the next year, the market is expecting a contraction of 28.5% in earnings ($1.93 versus $2.70).

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