Don't Miss Today's Strong And Under The Radar Stock: Ellie Mae (ELLI)
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Ellie Mae as such a stock due to the following factors:
- ELLI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.6 million.
- ELLI has traded 530.2240000000000463842297904193401336669921875 options contracts today.
- ELLI is making at least a new 3-day high.
- ELLI has a PE ratio of 137.
- ELLI is mentioned 1.65 times per day on StockTwits.
- ELLI has not yet been mentioned on StockTwits today.
- ELLI is currently in the upper 20% of its 1-year range.
- ELLI is in the upper 35% of its 20-day range.
- ELLI is in the upper 45% of its 5-day range.
- ELLI 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 ELLI:
Ellie Mae, Inc. ELLI has a PE ratio of 137. Currently there are 5 analysts that rate Ellie Mae a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Ellie Mae has been 453,500 shares per day over the past 30 days. Ellie Mae has a market cap of $2.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.78 and a short float of 12.6% with 7.79 days to cover. Shares are up 52.5% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Ellie Mae as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
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 35.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- ELLI's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, ELLI has a quick ratio of 2.31, which demonstrates the ability of the company to cover short-term liquidity needs.
- Compared to its closing price of one year ago, ELLI's share price has jumped by 31.32%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- ELLIE MAE INC's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ELLIE MAE INC increased its bottom line by earning $0.73 versus $0.50 in the prior year. This year, the market expects an improvement in earnings ($1.92 versus $0.73).
- The gross profit margin for ELLIE MAE INC is currently very high, coming in at 71.18%. Regardless of ELLI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ELLI's net profit margin of 3.40% is significantly lower than the industry average.
- You can view the full Ellie Mae Ratings Report.
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