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

Take advantage of the chance for 5% upside in EXR

   

At Stat3oftheMarkets.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 9.6 +1.82% $37.13

Why We Like The Stock:

Extra Space Storage Inc. (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) with an interesting short-term opportunity. First things first, EXR has been on an absolute tear since 2009, going from its lows of roughly $5 all the way up to its current price of $39. Now, it’s never great advice to buy high, but in the short-term EXR is a great looking chart. And with other Specialty REIT stocks like Hospitality Properties Trust (NYSE:HPT), Omega Healthcare Investors (NYSE:OHI) and Senior Housing Properties Trust (NYSE:SNH) having a stellar 2013 thus far , the momentum seems to be alive and well for this sub-industry. EXR has pulled back to a favorable entry point, has an immediate upside to $41, and has recently crossed above its short term moving averages. We’re not recommending EXR as a long-term investment, but using it for a short-term trade to snag a quick +5% gain looks like a pretty good idea today.

We Would Be Buyers:

At the current price (~$39.00), or on a pullback to ~$38.00.

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: 9.6

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

EXR 1 300x168 Bulls Eye Report: Extra Space Storage (EXR)
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Extra Space Storage – Last 12 Months

EXR 2 300x168 Bulls Eye Report: Extra Space Storage (EXR)
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Extra Space Storage – Last Five Years

EXR 3 300x168 Bulls Eye Report: Extra Space Storage (EXR)
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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”

 

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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