ServiceMaster Global Holdings (SERV) 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 ServiceMaster Global Holdings as such a stock due to the following factors:
- SERV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $108.4 million.
- SERV has traded 80.6418000000000034788172342814505100250244140625 options contracts today.
- SERV is making at least a new 3-day high.
- SERV has a PE ratio of 29.
- SERV is mentioned 1.32 times per day on StockTwits.
- SERV has not yet been mentioned on StockTwits today.
- SERV is currently in the upper 20% of its 1-year range.
- SERV is in the upper 35% of its 20-day range.
- SERV is in the upper 45% of its 5-day range.
- SERV 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 SERV:
ServiceMaster Global Holdings, Inc. provides residential and commercial services in the United States. It operates in three segments: Terminix, American Home Shield, and the Franchise Services Group. SERV has a PE ratio of 29. Currently there are 5 analysts that rate ServiceMaster Global Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for ServiceMaster Global Holdings has been 1.0 million shares per day over the past 30 days. ServiceMaster Global has a market cap of $4.9 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.58 and a short float of 1% with 0.29 days to cover. Shares are up 35.7% year-to-date as of the close of trading on Thursday.
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Analysis:
rates ServiceMaster Global Holdings as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
Highlights from the ratings report include:
- Compared to other companies in the Diversified Consumer Services industry and the overall market, SERVICEMASTER GLOBAL HLDGS's return on equity significantly exceeds that of both the industry average and the S&P 500.
- SERV's revenue growth has slightly outpaced the industry average of 1.3%. Since the same quarter one year prior, revenues slightly increased by 6.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 1950.00% and other important driving factors, this stock has surged by 41.05% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- 49.50% is the gross profit margin for SERVICEMASTER GLOBAL HLDGS which we consider to be strong. Regardless of SERV's high profit margin, it has managed to decrease from the same period last year.
- The debt-to-equity ratio is very high at 5.27 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, SERV maintains a poor quick ratio of 0.86, which illustrates the inability to avoid short-term cash problems.
- You can view the full ServiceMaster Global Holdings Ratings Report.
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