BroadSoft (BSFT) Is Today's Strong And Under The Radar Stock
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified BroadSoft as such a stock due to the following factors:
- BSFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.3 million.
- BSFT has traded 58.4328000000000002955857780762016773223876953125 options contracts today.
- BSFT is making at least a new 3-day high.
- BSFT has a PE ratio of 314.
- BSFT is mentioned 1.32 times per day on StockTwits.
- BSFT has not yet been mentioned on StockTwits today.
- BSFT is currently in the upper 20% of its 1-year range.
- BSFT is in the upper 35% of its 20-day range.
- BSFT is in the upper 45% of its 5-day range.
- BSFT is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on BSFT:
BroadSoft, Inc. provides software and services that enable telecommunications service providers to deliver hosted, cloud-based unified communications (UC) to their enterprise customers in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. BSFT has a PE ratio of 314. Currently there are 7 analysts that rate BroadSoft a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for BroadSoft has been 334,900 shares per day over the past 30 days. BroadSoft has a market cap of $1.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.87 and a short float of 9.3% with 11.79 days to cover. Shares are up 26.7% year-to-date as of the close of trading on Friday.
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Analysis:
rates BroadSoft as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 8.5%. Since the same quarter one year prior, revenues rose by 31.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 48.0% when compared to the same quarter one year prior, rising from -$2.91 million to -$1.51 million.
- BSFT's debt-to-equity ratio of 0.72 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.58 is very high and demonstrates very strong liquidity.
- The gross profit margin for BROADSOFT INC is currently very high, coming in at 78.31%. Regardless of BSFT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BSFT's net profit margin of -2.06% significantly underperformed when compared to the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Software industry and the overall market, BROADSOFT INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full BroadSoft Ratings Report.
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