“CubeSmart (CUBE) appeared on the MarketSmith Blue Dot Scan. The company is a real estate investment trust competing in the lucrative self-storage industry. Higher rents and high occupancy contributed to 15.6% growth in same-store revenue for CubeSmart in Q3. Funds from operations, the equivalent of EPS for REIT stocks, surged 27% in Q3. That compares with more typical FFO growth of 3% for all of 2019.” – Investors Business Daily
Home and small business owners from more populated regions of the country helped ignite demand for self-storage, as relocations to less populated States with fewer lockdown restrictions helped fuel earnings strength. Rising real estate prices also have families settling for smaller homes shich in turn neccessitaes more off-site storage.
MarketSmith Blue Dot Scan
CUBE is in a flat base, trading just below a $56.72 buy point. Since testing the 50d moving average last Tuesday, CUBE gained 5.73% closing at $55.90 on Monday. That buy point is just a stair-step above the prior base’s 55.17 buy point. A test of the recent peak of 56.05 two weeks ago is another entry zone, with a stop under the 50d at 54.00 (+/-).
Revenue growth has accelerated for five straight quarters.
CUBE relative strength line, rose to 94 on Monday, which tracks a stocks relative strength to the benchmark S&P 500. The improvement in relative strength is something to watch in the next few weeks as the stock attempts a breakout in the short-term..
REITs are defensive plays that investors seek when inflation is anticipated. Dividend yields look attractive, with the stock offering a 3.1% yield.