Digital Realty Trust is a highly ranked real estate investment trust (REIT) company for high tech firms. It's a one-stop shop, providing facilities, cloud networking and other products and services that companies need. On Friday, shares of Digital Realty stock got a key rating upgrade.
When putting together a watchlist, CAN SLIM investors focus on stocks with an 80 or higher Relative Strength Rating. Digital Realty stock just topped that benchmark, now earning an RS score of 81, up from 79. Research shows that the best stocks often have an 80 or better RS Rating as they launch their biggest price moves.
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Princeton, N.J.-based Digital Realty Trust did an amazing about-face in earnings growth this past year. It went from a 14% drop in sales four quarters ago to 95% growth, then 211% growth to $2.33 per share and ostensibly a 500% rise last quarter from a 2-cent per share loss a year earlier to an 8-cent profit.
Analyst consensus is for an 80-cent per share profit for the current quarter, which would be a 323% increase over the same period last year. Revenue is seen growing 2% to $1.36 billion.
Watchlist candidate Digital Realty Trust has consistently put up low double-digit revenue growth figures over the past four quarters: from 19% to 20%, 18% and 11% last quarter to $1.37 billion.
Meanwhile, Digital Realty stock is holding up well despite current market weakness. It rose to a more than two-year high 154.18 on March 5 and then consolidated. It traded around 136 Monday afternoon, trying to complete a flat base with a 154.18 buy point. See if the stock can break out in heavy trading.
In Top 5% For Profit Growth
Among its other ratings Digital Realty has a terrific 95 Earnings Per Share Rating. It has a decent 81 Composite Rating, a gauge of a stock's overall strength compared to other stocks.
However, one yellow flag to keep an eye on is its D Accumulation/Distribution Rating. That shows that mutual funds, university funds and other institutional investors are selling more shares than buying. Look for that to improve to a C or better rating.
Digital Realty Trust holds the No. 4 rank among its peers in the 161-stock Finance-Property REITs industry group. Essential Properties Realty Trust is the top-ranked stock in the group.
The exclusive Relative Strength rating from Investor's Business Daily identifies share price action with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks compares to all the other stocks in our database.
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