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Terreno Realty Corp Rated Highest by Growth Investor Model

A recent report highlights Terreno Realty Corp's strong performance within its sector according to the Growth Investor model, despite some concerns regarding its earnings growth. The stock exhibits promising attributes but fails to meet key earnings growth criteria.

Date: 
AI Rating:   5

The report provides a comprehensive analysis of Terreno Realty Corp (TRNO) using the Growth Investor model, emphasizing its potential as a mid-cap growth stock in the Real Estate Operations industry. TRNO achieves a rating of 46%, suggesting moderate interest from the investment strategy. A score over 80% is generally viewed as a strong candidate, indicating there is room for improvement in its fundamentals and valuation.

Key Highlights:

  • P/E Ratio: The stock passes the P/E ratio test, indicating that it is reasonably valued compared to its earnings.
  • Revenue Growth: The stock successfully meets the criteria for revenue growth in relation to EPS growth, suggesting that revenue increases are translating into earnings effectively.
  • Sales Growth Rate: It passes the sales growth rate assessment, reinforcing the company’s ability to expand its sales over time.
  • Current Quarter Earnings: The recent quarterly earnings show positive figures, which is beneficial for investor sentiment.

However, there are significant concerns regarding earnings growth:

  • Positive Earnings Growth Rate for Current Quarter: The stock fails this test, raising alarms about its immediate earnings prospects.
  • Earnings Growth Rate for Past Several Quarters: Another failure here casts doubt on the company's consistent earnings generation over time.
  • EPS Growth for Current Quarter Must Be Greater than Prior 3 Quarters: This still holds true, indicating the potential of stagnating earnings growth.
  • Long-term EPS Growth: The failure in this metric reflects a lack of confidence in the company's long-term earnings potential.

Despite passing tests related to total debt/equity ratios and positive insider transactions, the recurrence of failures in earnings-related criteria presents a risk to investors. While the growth model rates the stock as a potential buy, caution is advised due to the inconsistent earnings performance.

In summary, TRNO presents some appealing growth characteristics but significant weaknesses in earnings persist, which could deter risk-averse investors or lead to stock price volatility.

Stocks:  TRNO