Trade-Ideas LLC identified Sun Communities ( SUI) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Sun Communities as such a stock due to the following factors:

  • SUI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.2 million.
  • SUI has traded 76,641 shares today.
  • SUI traded in a range 696.2% of the normal price range with a price range of $7.29.
  • SUI traded below 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 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in SUI with the Ticky from Trade-Ideas. See the FREE profile for SUI NOW at Trade-Ideas

More details on SUI:

Sun Communities, Inc. operates as a real estate investment trust (REIT). It owns, operates, and develops manufactured housing communities in the midwestern, southern, and southeastern United States. The stock currently has a dividend yield of 3.3%. SUI has a PE ratio of 31. Currently there are 2 analysts that rate Sun Communities a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Sun Communities has been 566,400 shares per day over the past 30 days. Sun 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 0.18 and a short float of 3% with 2.04 days to cover. Shares are up 15.5% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sun Communities as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, good cash flow from operations and growth in earnings per share. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • SUI's revenue growth has slightly outpaced the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 12.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • Net operating cash flow has increased to $50.93 million or 24.37% when compared to the same quarter last year. In addition, SUN COMMUNITIES INC has also vastly surpassed the industry average cash flow growth rate of -65.75%.
  • SUN COMMUNITIES INC has improved earnings per share by 7.7% 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SUN COMMUNITIES INC increased its bottom line by earning $2.46 versus $0.59 in the prior year. For the next year, the market is expecting a contraction of 82.5% in earnings ($0.43 versus $2.46).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.