Extra Space Storage Inc. (EXR): Today's Most Compelling Stock Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Friday, April 5, 2013

At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
Extra Space Storage Inc EXR Specialized REITs 8.6 +6.57% $37.85

Why We Like The Stock:

Extra Space Storage Inc (EXR) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance). EXR was featured in Monday's Bull's Eye Report, and after a tumultuou s week in the markets (S&P 500 has been back in forth for 12 straight sessions now!), we like it even more now given how well it has held up this week. Other Specialized REITs AMERCO (UHAL) and Public Storage (PSA), like EXR, have recently pulled back from their February highs. EXR was as high as $40.50 in the second week of February. Since then the stock has based, turned a corner, and is trending higher once again. Last week, the stock crossed above its short-term moving averages. This week, the stock has stabilized and has traded above its 50-day moving average, despite a volatile week for stocks. We like EXR at its current price, using the 50-day moving average as a cushion. Our target for a short-term trade would be at the stock's February highs ($40.63). There is support at $38, though anything lower would make this trade much less attractive, so we'd either enter at current prices or at a pullback and subsequent holding of the $38 level.
We Would Be Buyers:

At the current price (~$39.38), or on a pullback to $38.

Looking to trade the Bull's Eye stock picks? Click here to download our free Special Report, "How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them"
Company Profile:

Extra Space Storage Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company owns, operates, manages, acquires, develops and redevelops professionally managed self-storage facilities. As of December 31, 2011, Extra Space Storage Inc. held ownership interests in 697 operating properties. Of these operating properties, 356 are wholly owned, and 341 are owned in joint venture partnerships. An additional 185 operating properties that are owned by franchisees or third-parties in exchange for a management fee, bringing the total number of operating properties, which it owns and/or manages to 882. The Company operates in three segments: property management, acquisition and development; rental operations, and tenant reinsurance.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

  Extra Space Storage Inc - Last 3 Months

  Extra Space Storage Inc - Last 12 Months

  Extra Space Storage Inc- Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.

The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

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Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Business , Stocks

Referenced Stocks: EXR , PSA , UHAL

David Moenning


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