Bull’s Eye Report: Forest City Enterprises (FCE.A)

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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.

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Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
Forest City Enterprises FCE.A Real Estate Operating Companies 9.6 +1.21% $16.37

Why We Like The Stock:

Forest City Enterprises (NYSE:FCE.A) 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). Much like its counterparts in real estate operating companies, Jones Lang LaSalle (NYSE:JLL), CBRE Group (NYSE:CBG), Howard Hughes Corp. (NYSE:HHC), and Alexander & Baldwin (NYSE:ALEX), FCE.A has been trending higher since its mid-November dip.

In late January, the stock peaked to $17.46 before pulling back in February to its current price around $16.72. FCE.A has solid support around the $16.50 area, which has held since the stock broke out in early 2013. We like FCE.A as a short-term trade up towards $17.50 with a tight stop at $16.37.

We Would Be Buyers:

At the current price (~$16.72) or on a pullback to the 50-day moving average ($16.58).

Company Profile:

Forest City Enterprises, Inc. is engaged in the ownership, development, management and acquisition of commercial and residential real estate and land in 28 states and the District of Columbia. The Company operates in five segments: Commercial Group, Residential Group, Land Development Group, The New Jersey Nets and Corporate Activities. Its core markets include Boston, Chicago, Dallas, Denver, Los Angeles, New York and the Greater Washington District of Columbia metropolitan area. During the fiscal year ended January 31, 2012 (fiscal 2011), the Company sold Waterfront Station-East 4th & West 4th Buildings; Charleston Marriott hotel in Charleston; Ritz-Carlton hotel in Cleveland, Ohio; its 50% interest in Metropolitan Lofts, a 264 unit apartment community in Los Angeles, California. In March 2012, the Company closed Quebec Square, a retail power center in Denver, to Quebec Square, CMH, LLC. In January 2013, it disposed two assets in non-core markets.

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.

Forest City Enterprises – Last Three Months

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Forest City Enterprises – Last 12 Months

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Forest City Enterprises – Last Five Years

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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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