Luxoft (LXFT) Showing Signs Of Being Strong And Under The Radar

Trade-Ideas LLC identified Luxoft (LXFT) as a strong and under the radar candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Luxoft

(

LXFT

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Luxoft as such a stock due to the following factors:

  • LXFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.4 million.
  • LXFT is making at least a new 3-day high.
  • LXFT has a PE ratio of 3.
  • LXFT is mentioned 0.55 times per day on StockTwits.
  • LXFT has not yet been mentioned on StockTwits today.
  • LXFT is currently in the upper 20% of its 1-year range.
  • LXFT is in the upper 35% of its 20-day range.
  • LXFT is in the upper 45% of its 5-day range.
  • LXFT 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 LXFT:

Luxoft Holding, Inc., together with its subsidiaries, provides software development services and IT solutions to multinational corporations primarily in Western Europe and North America. LXFT has a PE ratio of 3. Currently there are 3 analysts that rate Luxoft a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Luxoft has been 242,900 shares per day over the past 30 days. Luxoft 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 2.02 and a short float of 3.7% with 2.70 days to cover. Shares are up 73% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Luxoft as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, solid stock price performance, expanding profit margins and compelling growth in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 27.2%. Since the same quarter one year prior, revenues rose by 31.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • LUXOFT HOLDING INC has improved earnings per share by 13.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, LUXOFT HOLDING INC increased its bottom line by earning $1.92 versus $1.56 in the prior year. This year, the market expects an improvement in earnings ($2.74 versus $1.92).
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 76.00% over the past year, a rise that has exceeded that of the S&P 500 Index. 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.
  • 40.58% is the gross profit margin for LUXOFT HOLDING INC which we consider to be strong. Regardless of LXFT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.86% trails the industry average.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the IT Services industry average, but is greater than that of the S&P 500. The net income increased by 16.2% when compared to the same quarter one year prior, going from $12.58 million to $14.61 million.

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