Bull’s Eye Report: Extra Space Storage (EXR)

EXR based in February, turned a corner, and is trending higher once again

   

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 EXR Specialized REITs 8.6 +6.57% $37.85

Why We Like The Stock:

Extra Space Storage (NYSE: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 earlier on March 8), and after a tumultuous week in the markets (S&P 500 has been back and 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 (NASDAQ:UHAL) and Public Storage (NYSE: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.

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: 8.6

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.

Extra Space Storage – Last Three Months

EXR3 1 Bull's Eye Report: Extra Space Storage (EXR)

Extra Space Storage – Last 12 Months

EXR3 2 Bull's Eye Report: Extra Space Storage (EXR)

Extra Space Storage – Last Five Years

EXR3 3 Bull's Eye Report: Extra Space Storage (EXR)

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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.


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