by John Stevens
August 2, 2011 8:39 AM
Having just released its second quarter results showing about 22 percent year-over-year growth, Extra Space Storage Inc. (NYSE: EXR) has been upgraded to "buy" status as rated by TheStreet, a leading digital financial media company.
Extra Space Storage's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins and impressive record of earnings per share growth. Highlights from the ratings report include:
- Extra Space Storage reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. During the past fiscal year, the company reported lower earnings of $0.30 versus $0.37 in the prior year. This year, the market expects an improvement in earnings ($0.41 versus $0.30).
- 36.20% is the gross profit margin for Extra Space Storage and has increased from the same quarter the previous year.
- Powered by its strong earnings growth of 71.42% and other important driving factors, EXR stock has surged by 37.97% over the past year, outperforming the rise in the S&P 500 Index during the same period. EXR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- EXR's revenue growth has slightly outpaced the industry average of 9.9%. Since the same quarter one year prior, revenues rose by 14.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
Extra Space Storage, Inc. operates as a real estate investment trust (REIT) in the United States. It engages in property management and development activities that include acquiring, managing, developing, and selling, as well as the rental of self-storage facilities. The company has a P/E ratio of 60.9, equal to the average real estate industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Extra Space has a market cap of $1.9 billion and is part of the financial sector and real estate industry.
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Sources Used:
“Extra Space Storage Inc. Stock Upgraded.” TheStreet. August 1, 2011.
Robinson, Holly. “Second Quarter 2011 Operating Results Released for Extra Space Storage.” Self Storage Industry News. July 29, 2011.