NIC (EGOV) Highlighted As Strong And Under The Radar Stock Of The Day

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

Trade-Ideas LLC identified

NIC

(

EGOV

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

  • EGOV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.3 million.
  • EGOV has traded 13.417899999999999494093572138808667659759521484375 options contracts today.
  • EGOV is making at least a new 3-day high.
  • EGOV has a PE ratio of 32.
  • EGOV is mentioned 0.29 times per day on StockTwits.
  • EGOV has not yet been mentioned on StockTwits today.
  • EGOV is currently in the upper 20% of its 1-year range.
  • EGOV is in the upper 35% of its 20-day range.
  • EGOV is in the upper 45% of its 5-day range.
  • EGOV 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 EGOV:

NIC Inc., together with its subsidiaries, provides eGovernment services that enable governments to use the Internet to provide various services to businesses and citizens in the United States. EGOV has a PE ratio of 32. Currently there are 2 analysts that rate NIC a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for NIC has been 199,600 shares per day over the past 30 days. NIC has a market cap of $1.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.39 and a short float of 2.6% with 8.32 days to cover. Shares are up 5.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates NIC as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.7%. Since the same quarter one year prior, revenues slightly increased by 6.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • EGOV has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, EGOV has a quick ratio of 2.38, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, NIC INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has slightly increased to $17.06 million or 7.14% when compared to the same quarter last year. In addition, NIC INC has also modestly surpassed the industry average cash flow growth rate of 1.45%.
  • NIC INC reported flat earnings per share in the most recent quarter. 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, NIC INC increased its bottom line by earning $0.59 versus $0.48 in the prior year. This year, the market expects an improvement in earnings ($0.62 versus $0.59).

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